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What are black markets?

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But when governments restrict the sale of a commodity, such as automobiles, to a single state-controlled brand at an artificial price, then economists say such a market is no longer free. Markets in the former Soviet Union were not free, which is why an illegal market in food and other essential goods and services flourished side by side with official ones. Economists call these illegal markets the underground economy or black markets. Such markets tend to spring into existence in any country whenever government taxes or regulations restrict the sale or supply of a product.

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