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Consider the market for insulin which has a a binding price ceiling in Europe and is...

Consider the market for insulin which has a a binding price ceiling in Europe and is unregulated in the United States. If the reimport and reexport of insulin is illegal in both jurisdictions, do you expect a black market to emerge? Why or why not?

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Answer #1

Market can imerge in this case because they can get a lot profit with it and they can increase the production with the profit and can increase the value of insulin in market.

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