Consider owners of roofing, nails, gasoline, food, etc outside the disaster area. In the case of Burma, consider owners of these goods in adjoining coutnries such as Thailand and Bangladesh.which answer choices from bellow are correct? multiple can.

When the flooding hits Burma but not Thailand or Bangladesh, large price differentials will be created between Burma and adjoining countries.

Large price differentials act as a signal to owners of goods telling them where their goods are most valuable.

Large price differentials make a personal incentive for owners of goods to reallocate their supply of goods from low tohigh valued areas. This isbecause reallocating will allow them to sell their goods at higher prices yielding profits for themselves.

The bigger the price differential the more likely owners of scarce goods will take extraordinary measures to overcome obstacles to moving scarce goods into disaster areas. Flooded roads, lack of electricity, additional flooding, etc. will be less likely to prevent movement of goods into the disaster area the high the price differential.

Preventing a large price differential from occuring by regulating prices would prevent hoarding.

Preventing a large price differential by regulating prices would make people in the disaster area better off by ameliorating the effects of the natural disaster.

When there are large unanticipated changes in demand or supply, government intervention is a better solution than the free market. The free market is good during normal times but extraordinary events mean only government can respond quickly and effectively.

Rather than handing out free food and other supplies in disaster areas, government could be just as effective in ameliorating the effects of a natural disaster if they handed out cash to people in the disaster ares.