Question
Comment on why anti-gouging laws can increase social welfare. A. Penalties assessed on price gougers can be redistributed to victims or the area at large
Comment on why anti-gouging laws can increase social welfare.
A. Penalties assessed on price gougers can be redistributed to victims or the area at large that was affected by natural disaster. In that sense, the government wants more illegal price gouging to occur so it can prosecute and raise more revenue in fines and redistribute to voters.
B. They reduce the availability of supplies to rich people, which helps to smooth out income inequality.
C. They make products affordable for people who cannot pay the "gouge" price, and they are a solution for traumatic situations where new suppliers cannot enter because of physical restraints from the natural disster.
D. Legislators and regulators benefit by making pronouncements against price gougers, knowing the public holds such a low opinion of them (the gougers, not the politicians). The public sees swift action against profiteers, and legislators/regulators enhance their standing in the public eye.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
While all of these options might seem plausible at first glance only one aligns closely with the int...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started