tsunami, earthquake, hurricaneDiscuss the implementation of price control after natural disaster.?
Price control should only be to prevent gouging. When dealing with economics, its best to let the market find its equilibrium point. But during a natural disaster the supply of food and gas become inelasic, because people want to servive the disaster, and are willing to pay $100 for a gallon of water. The government interferes and controls prices to save the economy (if people spend all of their money surviving a natural disaster, they will have none to start over after their homes and jobs are gone.).
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