After Natural Disasters Such as Hurricanes, the Prices of Necessity

question 271

Essay

After natural disasters such as hurricanes, the prices of necessity goods such as bottled water, generators, milk, and so forth, in the areas hit by the hurricane tend to increase dramatically. Many consumers and politicians have termed these increases "price gouging," as they insinuate that suppliers are taking advantage of consumers when they are most vulnerable. Governments have even gone so far as to make price gouging illegal, saying in many places that it is illegal to charge any price significantly higher than "pre-hurricane prices." From an economic standpoint, are these laws that prohibit price gouging efficient? What would happen if these laws were repealed and prices were allowed to increase?

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Definitions:

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An attribute or feature of a job that affects the attitudes and behaviors of the employees, such as task variety, autonomy, and feedback.

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A process that enhances job satisfaction by integrating meaningful and fulfilling tasks into an employee's role.

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A group of employees who are efficiently achieving their tasks and contributing positively to the organization's goals.

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The process of focusing one's occupational concentration on a specific area of expertise, allowing for increased efficiency and skill development in that area.