Suppose that, due to reasons unknown, there has been a sudden increase in demand for toilet paper.

a. If the market adjusts to a new equilibrium, what will happen to the price and quantity of toilet paper?

b. Now suppose that instead, the government forces firms to keep prices constant (anti-gouging laws). What will happen to the quantity of toilet paper supplied and demanded?

c. Do anti-gouging laws help consumers get enough toilet paper at reasonable prices? Why or why not?