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During World War 2 gasoline and other consumer goods were in short s

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During World War 2 gasoline and other consumer goods
were in short supply on the home front so that maximum
resources could be diverted to the war effort. In order to
cutback on the consumption of these many products,
rationing coupons were issued to households. In the
gasoline, in particular, a \"black market\" quickly arose.
Using the tools of supply and demand analysis, explain
how these rationing coupons were valued.
Solution
hi
A black market or underground economy\' is a market in
which goods or services are traded illegally. The key
distinction of a black market trade is that the transaction
itself is illegal. The goods or services may or may not
themselves be illegal to own, or to trade through other,
legal channels. Because the transactions are illegal, the
market itself is forced to operate outside the formal
economy that is supported by the established state power.
Common motives for operating in black markets are to
trade contraband, avoid taxes, or skirt price controls.
Typically the totality of such activity is referred to with the
definite article as a complement to the official economies,

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by market for such goods and services, e.g. \"the black
market in bush meat\". The black market is distinct from
the grey market, in which commodities are distributed
through channels which, while legal, are unofficial,
unauthorized, or unintended by the original manufacturer,
and the white market.The black market is considered a
subset of the informal economy, of which 1.8 billion people
worldwide are employed.
Wars:Black markets flourish in most countries during
wartime. States that are engaged in total war or other
large-scale, extended wars often impose restrictions on
home use of critical resources that are needed for the war
effort, such as food, gasoline, rubber, metal, etc., typically
through rationing. In most cases, a black market develops
to supply rationed goods at exorbitant prices. The rationing
and price controls enforced in many countries during World
War II encouraged widespread black market activity.One
source of black-market meat under wartime rationing was
by farmers declaring fewer domestic animal births to the
Ministry of Foodthan actually happened. Another in Britain
was supplies from the USA, intended only for use in USA
army bases on British land, but leaked into the local native
British black market.For example, in the Parliament of the
United Kingdom on 17 February 1945members said that
\"the whole turkey production of East Anglia had gone to

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During World War 2 gasoline and other consumer goods were in short supply on the home front so that maximum resources could be diverted to the war effort. In order to cutback on the consumption of these many products, rationing coupons were issued to households. In the gasoline, in particular, a \"black market\" quickly arose. Using the tools of supply and demand analysis, explain how these rationing coupons were valued. Solution hi A black market or underground economy \' is a market in which goods or services are traded illegally. The key distinction of a black market trade is that the transaction itself is illegal. The goods or services may or may not themselves be illegal to own, or to trade through other, legal channels. Because the transaction s are illegal, the market itself is forced to operate outside the formal economy that is supported by the established state power. Common ...
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