Explore BrainMass
Share

Price Gouging during Hurricane Reconstruction

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than expected for the reconstruction to take place. A possible explanation for this is said to be due to a government-imposed restriction on price gouging during the reconstruction period. Explain this.

© BrainMass Inc. brainmass.com March 21, 2019, 3:11 pm ad1c9bdddf
https://brainmass.com/economics/economic-analysis-of-law/price-gouging-during-hurricane-reconstruction-144801

Solution Preview

The price gouging law specifically provides that during a declared emergency, "No person shall sell... a good or service...for a price which is grossly in excess of the price prior to the declaration and unrelated to any increased cost to the seller." It is enacted due to the fact that businesses charge ...

Solution Summary

Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than expected for the reconstruction to take place. A possible explanation for this is said to be due to a government-imposed restriction on price gouging during the reconstruction period. Explain this.

$2.19