Why anti-gouging laws can increase social welfare

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Reference no: EM133328028

Question: After considering the situation of market power for my software and how it changed after the introduction of competitors, consider situations of natural disasters and how governments respond to shortages resulting from them.

a. Comment on why anti-gouging laws can increase social welfare (i.e,. make society better off). Anti gouging laws make products more affordable by using regulation to adjust prices

b. In contrast, comment on why price gouging may increase social welfare. The higher price increases consumer surplus.

c. Which argument do you find more persuasive, and why? I.e., should governments continue to use anti-gouging laws to correct supposed market failures occurring after natural disasters?

Reference no: EM133328028

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