The Black Market or the Underground Market

The black market is a underground market operated outside the "legal system where illegal items are sold or legal items are sold at illegal prices or conditions". The black market is characterized by high price, products with violent defects. Compared with the legal market, the high value of the black market comes from the risk of the supplier. Suppliers are subject to the risk of "being arrested, fined or imprisoned." In many cases, the violence characterized by the black market arises from the fact that "there is no legal means for a peaceful settlement of the conflict" and the parties who did not follow the agreement.

The black market is a market for trading illegal goods and services. They may exist under the municipality of the local government. They may be hidden or underground markets found in dark alleys, or they may be publicly tolerated. In the dark economy of the world, companies are trying to avoid government regulations and to tax large quantities of goods and services. Often, lack of economic freedom is a factor in stimulating the development of the black market in some countries. In some cases, the shadow market employs people who feel left behind in a system that supports legal monopoly or excessive taxation or regulation. Their sacrifice is considered a reason for their economic behavior

Black market, underground economy, or shadow economy are secret markets or transactions characterized by certain aspects of illegality, or some form of violation and a series of institutional rules. If the regulation defines a collection of goods and services that are prohibited to be manufactured and distributed by law, the transaction itself is illegal, so violating the rules will result in black market transactions. Parties engaged in the manufacture or sale of smuggled goods and services are a member of the illegal economy. Examples are narcotics, prostitution (prohibited places), illegal currency transactions and trafficking. The tax law violation including tax evasion will become a member country of the economy which has not been reported

A shortage due to price cap may cause a black market. Black market is an industry violating price control and distribution, also known as underground economy. This transaction is illegal. For example, Burma's ruby ​​is the most valuable ruby ​​mined worldwide, and in some countries it has led to price cuts. In order to solve this problem, traders sell goods at high prices on the black market, so that only rich people can purchase. When the government sets a statutory limit on the price of the product, the price limit will be displayed. In order to activate Price Cap, it is necessary to set it below market equilibrium. The market equilibrium price is the price at which the number of products offered by producers and sellers is equal to the number of products consumers are willing to purchase.