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    Price Gouging during Hurricane Reconstruction

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    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.

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    https://brainmass.com/economics/economic-analysis-of-law/price-gouging-during-hurricane-reconstruction-144801

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    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.

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