21 Jul WHO GAINS AND WHO LOSES WHEN ANTIGOUGING LAWS CONTRIBUTE TO SHORTAGES OF ITEMS SUCH AS BOTTLED WATER OR PLYWOOD?
In many states including Florida it is Show more Preventing Price Gouging Promotes Black Markets in Florida In many states including Florida it is illegal to engage in price gouging. Floridas law penalizes a seller for any gross disparity between the quoted price of a necessity item such as water and the items price on the date that the governor declares a state of emergency. The penalties stay in force for 30 days from the date of the declaration. Florida is susceptible to hurricanes and in 2004 three successive hurricanes struck Florida. The demand for necessities such as bottled water gasoline and plywood increased significantly since damages to the states housing electrical grid and businesses were extensive. With prices fixed at prehurricane levels there was little incentive for producers and others outside the state to rush these items to Florida disaster areas. (A) Who gains and who loses when antigouging laws contribute to shortages of items such as bottled water or plywood? Show less
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