Question
Please respond to this post: How is economics affected by price gouging? A demand curve shows the relationship between price and quantity demanded, but if
Please respond to this post:
How is economics affected by price gouging?
A demand curve shows the relationship between price and quantity demanded, but if quantity demand is defined as the quantity that buyers are willing (and able) to purchase at a particular price what happens when price gouging comes into effect.
Why I ask this is because price gouging is normally created by an influencer. For example, the price of lumber currently is higher than it has ever been because the pandemic shut everything down which resulted in homeowners doing more DIY projects and because of the lack in activity options, those homeowners are wiling to pay the increased price. But what happened when Hurricane Katrina hit and the price of water skyrocketed? Individuals weren't necessarily willing to purchase the insanely priced water but were put into a situation where they had to. Water wasn't in any way limited in supply because the rest of the U.S. had plenty and was shipping it South in order to assist with hurricane relief.
So does the curve move, does it inverse, or does it simply become obsolete once price gouging is enacted?
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