Price (per bottle) Quantity supplied Normal times quantity demanded Hurricane quantity demanded $6 100 25 75 $5 85 35 85 $4 70 45 95 $3 55 55 105 $2 40 65 115 $1 25 75 125 Concerned with citizen complaints of price gouging during past hurricanes, Florida's state government passes a law setting a price ceiling for a bottle of water equal to the market equilibrium price during normal times. After all, it seems unfair that sellers of water gain because of a hurricane. During a hurricane, there would be a shortage of bottles of water. Without the antiprice gouging law, consumers would have to pay $ more than the ceiling price, but they would be able to buy more bottles of water.
Price (per bottle) Quantity supplied Normal times quantity demanded Hurricane quantity demanded $6 100 25 75 $5 85 35 85 $4 70 45 95 $3 55 55 105 $2 40 65 115 $1 25 75 125 Concerned with citizen complaints of price gouging during past hurricanes, Florida's state government passes a law setting a price ceiling for a bottle of water equal to the market equilibrium price during normal times. After all, it seems unfair that sellers of water gain because of a hurricane. During a hurricane, there would be a shortage of bottles of water. Without the antiprice gouging law, consumers would have to pay $ more than the ceiling price, but they would be able to buy more bottles of water.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
(per bottle) |
Quantity supplied | Normal times quantity |
Hurricane quantity demanded |
| $6 | 100 | 25 | 75 |
| $5 | 85 | 35 | 85 |
| $4 | 70 | 45 | 95 |
| $3 | 55 | 55 | 105 |
| $2 | 40 | 65 | 115 |
| $1 | 25 | 75 | 125 |
Concerned with citizen complaints of price gouging during past hurricanes, Florida's state government passes a law setting a
During a hurricane, there would be a shortage of bottles of water.
Without the antiprice gouging law, consumers would have to pay $ more than the ceiling price, but they would be able to buy more bottles of water.
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