Question

Price controls in Venezuela resulted in a thriving black market in many goods. The black market arose because the price controls that were implemented by the Venezuelan government were​ ________ which resulted in a​ ________ of products.

Answer 1

The correct words to fill the missing gaps are :

Price ceilings; shortages

Step-by-step explanation:

Price control are government mandated restrictions set in place for the minimum or maximum price that can be charged for goods and services or for a specified goods. They are usually put in place as a direct economic intervention used to manage the affordability of certain goods.

In Venezuela under the government of Hugo Chavez, price control policies were enacted and this leads to shortage of food stables and other basic nessessities.

The price ceilings that was enacted by the Venezuelan government under Hugo Chavez created room for black market settings to thrive and artificial shortages of products were implemented by the sellers.

Answer 2

price ceilings; shortage

Step-by-step explanation:

Price control is defined as government imposed prices to regulate the way forms make profit in the market. Take for example if a product is in high demand and firms can raise prices very high to make profit. To protect the consumer the government will set a price ceiling to limit price increase.

In Venezuela when price ceilings were implemented the sellers will create artificial shortage which forces the consumer to buy at higher prices in a black market arrangement.