Write 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: Read “Florida Lawsuits Allege Price Gouging,” and “They Clapped: Can Price-Gouging Laws Prohibit Scarcity?” Read the article from Chapter 4 in your textbook(Mankiw, N. G. (2020). Principles of Economics (9th ed). Stamford CT: Cengage. ISBN: 9780357476802): “In the News: Price Increases after Disasters” (pages 80-81). Also read the article – The Problem with Price Gouging Laws The Problem with Price Gouging Laws – Alternative Formats . Watch the Price Gouging videos above. 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 ) What is your conclusion? Is price gouging a good thing or not? Or is it just necessary? Explain why. Post your views to the discussion board and refer to at least two different concepts from this week’s Chapters.
