please respond with at least 150 words Thank you 1 Price cha

please respond with at least 150 words Thank you!!

1. Price changes

Identify at least 3 items that have changed in price recently. Speculate on what demand or supply factors might have been responsible for the change in equilibrium price.  

Some examples you can use are gas, milk, shoes, and cars.

2. Price gouging

After natural disasters, it is typical to see prices soar as supply decreases and demand increases. A friend of mine from Puerto Rico just told me a flight out of the country costs about $2,500 currently as there are so few flights leaving and 7000 people fleeing each week. This is 10 times the previous cost of $250 for a flight to Miami.  

Discuss the concept of price gouging, why this occurs after natural disasters.

Determine what benefits this has for the market and the negative effects this can have

There is a recent argument in the Harvard Business Review to look at the benefits of placing a ceiling of the prices immediately following a disaster. Determine what the benefits and consequences of that would be.  

Solution

Can answer only four parts according to chegg policy policy.. So am answering 2 question which contains 4 parts

1 price gouging is the the trade practice whereby sellers increase price of goods and services beyond reasonable levels. It happens due to demand and/or supply shock quite often

B This occurs after natural disasters due to supply shock. Supply is quite less relative to demand due to blockade of highways. On the other hand demand increases for precautionary purposes to store goods.

C positive benefits is that it equates supply with demand and thus reduces excess demand. Suppliers are also motivated to bring more supply which ultimately results in lower prices. The negatives are poor people are forced out of market, there is exploitation of consumers, unwarranted profits etc

D benefits will be that consumers can play lower prices. This reduces exploitation and does not force poor out of market. Speculation is curtailed. Consequences will be suppliers will not be motivated to release more supply. Black marketing is quite possible. There will be more demand relative to supply.