You are an economic adviser to Congressman Spout well. The Congressman is considering proposing an anti-price gouging la...

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You are an economic adviser to Congressman Spout well

April 14, 2018

You are an economic adviser to Congressman Spout well. The Congressman is considering proposing an anti-price gouging law in his state which would take effect after hurricanes. He wants to model the law on the current Florida legislation, which prohibits the sale or rental of essential commodities such as lumber, ice, water or generators at “unconscionable” prices which “grossly exceed” the average price at which the commodity was sold before the hurricane. Congressman Spout well asks you, his economic adviser, to provide him with a brief list of pros & cons of the law. “But also,” he says, “tell me how you think the proposed law will protect the average citizen; will it help them or hurt them, after a hurricane? Why?” Be sure to use economic reasoning in your response.










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