For example, the Hurricane Katrina disaster left many homeless and unable to care for themselves. In other words, the demand for goods and services in the affected areas is actually quite inelastic. Price ceilings remove the regulating forces of a normal function market.
A noticeably high price, and thus demand for particular goods would normally draw sellers into that location. More specifically, the laws represent price ceilings during the aftereffects of state emergencies. The Huffington Post, Retrieved from http: Local businesses were not able to provide for victims due to damage or overwhelming demand.
The consumer has wasted their time waiting in line for no gain, cause further inefficiencies in the market.
Price control essay cannot use monetary power to reflect their need for goods and services. Price ceilings force sellers to charge normal prices in situations with abnormally high demand. However, the more standard debates about government regulation take on a more interesting twist when one considers the role of government price controls in disaster areas, such as the areas devastated by Hurricane Sandy.
The ceiling is better defined under New Jersey State law, as it is illegal to raise prices by more than 10 percent in the current situation. In the worst cases, consumers wait in line only to discover that the ration for the good has run out. Disaster areas face abnormally high demand from consumers, and the higher prices from the demand should bring in additional sellers.
Government price controls following Hurricane Sandy The article describes the effects of government price controls on the general goods and services market for the areas Price control essay by Hurricane Sandy and price gouging after the disaster.
Many goods become vital and necessary in a disaster situation, and the law does not clearly define the meaning of an unconscionably excessive price. The increased demand is not met with the expected increase in supply, creating a shortage.
Price controls in the wake of sandy. The need for such goods and services means that the elasticity for those particular products is extremely low.
Setting a reasonable price following localized disasters The locations are struggling to bring power to their residents, meaning that phone and internet purchasing ability is low or nonexistent.
Officials and lawmakers were concerned about potential price gouging by businesses of New York and New Jersey. The shortage of goods means that demand cannot be properly satisfied, leading to rationing.
Rationing of goods and price limits during disasters Additional issues arise with the rationing of goods under emergency situations. The lack of viable options for consumers means they must shop at local stores, regardless of prices, which opens the doors for the price gouging the government is concerned about.
This sample economics paper explores government intervention following the disaster. The government feels that by enacting a price ceiling during specific times, they are protecting the consumer from overpaying for necessary goods and services. Both laws operate as price controls that protect the U.
The article gives details on the price controls in place for both the New York and New Jersey areas. Although prices rise, all demand is met, and every buyer with the necessary purchasing power is able to acquire the good or service in question.
A Price control essay imposed disaster: The average level of prices means that additional sellers will not appear in the market and that existing sellers will not be more inclined to make sure their product is available in appropriate quantities.
Sellers face serious fines for price gouging, which are meant to deter such actions and hopefully encourage them to provide their products at normal rates. Buyers do not have the means to shop elsewhere. Price floors and scarcity of goods The major issue with price floors is that they cause a scarcity of the specific goods and services under their regulation.
Long lines for goods and services are inefficient and force consumers to waste time because of their need for the particular item. Sellers know that consumers do not have a lot of options in regards to the purchases of particular items.
Select network The entire discussion of government regulation in the economy is a source of controversy. In addition, consumers do not have the ability to shop at other store locations because many roads and other transportation routes such as trains etc.
Price ceilings are implemented to prevent price gouging because sellers know that consumer demand is extremely inelastic during disasters.
However, government price limits prevented consumers from bringing much-needed resources to the area.
Businesses are aware that consumers in their respective areas are in dire need of specific goods and services, due to the damages caused by the hurricane. State laws regulating price of goods New Jersey State law is more clear with regards to what sellers actions sellers may not undertake.
The areas affected by the storm required resources from the government and non-profits to make up for lost local business supplies.Price control can play two different roles, a price ceiling or a price floor.
A price ceiling is the maximum price that can be charged in the market for a certain good, causing shortages, and a price floor is the minimum price that can be charged in the market, which then causes surpluses. All essays are written from scratch by professional writers according to your instructions and delivered to your email on time.
Prices start from $ /page. Price Control Paper 2 Price Control Paper The United State of America has been faced with many political leaders in its years of existence.
All of these leaders had different views on the economy and the impact their choices would make on the American people%(2). The article describes the effects of government price controls on the general goods and services market for the areas affected by Hurricane Sandy and price gouging after the disaster.
Officials and lawmakers were concerned about potential price gouging by businesses of New York and New Jersey.5/5(2).
Price Control Supply, Demand, and Government Policies MULTIPLE CHOICE [i]. A price floor a. is a legal minimum on the price at which a good can be sold.
b. is a legal maximum on the price at which a good can be sold 2 / Reasons why people believe that the market system is the best method of allocating resources in an economy. This is an argumentative essay discussing the price control law and the importance of protecting consumers against price.
4 Pages ( words) Essay. What actions might be taken by the government of your Uk to reduce or limit price fluctuations of oil.Download