Write a paper about Price Gouging. Price gouging occurs only under a narrow set of legally defined circumstances.
Price gouging is a legal concept, not an economic concept.
When a natural disaster occurs and the governor of the state declares a state of emergency then the price gouging law of that state will go into effect, but only if the state has such a law.
The economic effect of price gouging laws is to put a Price Ceiling on all goods and services covered by the state’s price gouging law. Price ceilings always cause shortages.
Assignment Summary:
1. Read “Florida Lawsuits Allege Price Gouging,” and “They Clapped: Can Price-Gouging Laws Prohibit Scarcity?”
2. Read the article from Chapter 4 in the textbook: “In the News: Price Increases after Disasters” (pages 80-81).
Textbook
Title: Principles of Economics Loose-leaf with MindTap Edition: 9th Publisher: Cengage Learning Language: English ISBN-13: 978-0357476802
3.Also read the article – The Problem with Price Gouging Laws The Problem with Price Gouging Laws – Alternative Formats .
4.Watch the Price Gouging videos above.
Mike Munger on Anti-Gouging Laws
Yaron Answers: Should The Government Stop Price Gouging
( both videos are found on Youtube)
5.Summarize the main points of each article and decide which graph (A, B, C, or D) can be used to explain each event and why – be specific. More than one graph may apply. ( SupplyAndDemandGraphs2.doc Supply and Demand Guide – Alternative Formats and Supply and Demand Graphs.pptx Supply and Demand Powerpoints – Alternative Formats )
https://keiseruniversity.blackboard.com/bbcswebdav/pid-24191345-dt-content-rid-116471992_1/xid-116471992_1
https://keiseruniversity.blackboard.com/bbcswebdav/pid-24191345-dt-content-rid-116471991_1/xid-116471991_16.
(these are the links to find and choose the graph)
What is your conclusion? Is price gouging a good thing or not? Or is it just necessary? Explain why.
7. Your illustration of concepts MUST include an explanation why you think they are are relevant to the week’s topic using specific information from the articles, videos and other research that you have done.
