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Florida, like several other states, has passed a law prohibits Price gouging immediately before, during, or after the declaration of state of emergency. Price

Florida, like several other states, has passed a law prohibits" Price gouging " immediately before, during, or after the declaration of state of emergency. Price gouging is defined as"''.... selling necessary commodities such as food, gas, ice, oil and lumber at a price that grossly exceeds the average selling price for the 30 days prior to the emergency. " Many consumers attempt to stock up on emergency supplies, such as bottled water, immediately before and after a hurricane or other natural disaster hits an area. Also, many supply shipments to retailers are interrupted during a natural disaster. Assuming that law is strictly enforced, interrupted during a natural disaster. Assuming that the law is strictly enforced, what are the economic effects of the price gouging statue ? Explain Carefully.

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