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Price Quantity supplied Normal times quantity demanded Hurricane quantity demanded $1,500 100 10 40 $1,200 80 20 80 $900 60 30 120 $600 40 40
Price | Quantity supplied | Normal times quantity demanded | Hurricane quantity demanded |
$1,500 | 100 | 10 | 40 |
$1,200 | 80 | 20 | 80 |
$900 | 60 | 30 | 120 |
$600 | 40 | 40 | 160 |
$300 | 20 | 50 | 200 |
$0 | 0 | 60 | 240 |
Suppose the New Orleans city council passes a price gouging law: during a hurricane, the price of a generator cannot increase by more than 50% above thenormalmarket equilibrium price. During a hurricane there would be a shortage of______ generators.
If there were no price gouging law, consumers would have to pay a) $____ during a hurricane, but they would be able to buy b)_____ generators.
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