Source: https://mises.org/library/price-gouging-saves-lives-hurricane

1/ There are laws against raising prices during a natural disaster. It's called "price gouging."

Group of answer choices

True

False

2/ In an unhampered market, the self-interest of vendors who supply urgently needed goods meshes beautifully with the self-interest of customers who urgently need these goods.

Group of answer choices

True

False

3/ In a market, we have _____________ to ensure that when there is any dramatic change in the supply of a good or the demand for a good.

Group of answer choices

FEMA

the U.S. government

the UN

price mechanisms

4/ The author states, "Price gouging saves lives," what does he mean by this statement?

Group of answer choices

He implies the statement literally.

He implies nothing.

He implies the statement is too difficult to explain.

He implies that the people who most urgently need a particular good will more likely be able to get it.

5/ In the ice bag example, what happens when the price is kept at $4.39 a bag?

Group of answer choices

Everyone is happy with the price of $4.39.

The last five people get no ice. Yet one or more of the last five applicants may need the ice more desperately than any of the first five.

Everyone gets ice.

The last five people get ice.

6/ In the ice bag example, what happens when the price is raised to $15.39 a bag?

Group of answer choices

Customers will act more economically with respect to the available supply.

Suppliers of ice respond to meet the demand for ice.

All answers are correct.

The people who need ice the most will get it.

7/ According to the author, price gouging is just a mechanism of supply and demand in the free market.

Group of answer choices

True

False

8/ We have seen shortages of household goods such as toilet paper, hand soap, and other items during the Covid-19 pandemic.If retailers had raised prices significantly on these goods , hoarding would become very expensive.

Group of answer choices

True

False