Reference no: EM132078447

This week we focus on why prices are what they are in the market economy.

Chapter 5 deals with interferences in the market economy where prices are not set by consumers or producers, but are determined by government intervention.

View the below video on "price gouging." https://www.learnliberty.org/videos/price-gouging-immoral-should-it-be-illegal

What were your thoughts on price gouging before the video? Did it change your feelings at all on the impact of government controls on prices?

Based on what we learned about supply and demand in Seminar 1, is there such a thing as price gouging? Is price gouging immoral? Are there economic reasons to pay a higher price for a good during a crisis?

At approximately the 4:00 minute mark the video discusses that price control laws are meant to help those that may find themselves in a vulnerable situation. What does the speaker mean when he says that price gouging laws do not address the problem of increased demand or decreased supply?

What are some other examples of market controls, and are they beneficial, or harmful to the economy?

In the aftermath of 2012's Hurricane Sandy, there was a lack of gasoline for consumers to purchase in New York and New Jersey. Lines were common, as there was significant demand for whatever gas was available. Sellers could have found ways to deliver their product, though may have had to charge more. What was the problem with this market that prevented producers from delivering gasoline to consumers?