Chapter 6: Price Controls Page(s) 198-199 6.2. What effects do price ceilings have on economic activity? Select all of the statements that discuss one of the problems with price gouging laws that prevent prices from rising to the new market equilibrium after a disaster. True Statement about Price Gouging Drag appropriate answer(s) here + Price gouging laws reduce shortages after a disaster by keeping prices low. Price gouging laws do nothing to address the underlying issues that cause shortages after a disaster. In fact, they often make the problem worse. th When prices rise after a disaster, producers are encouraged to produce more of the good and bring it to the disaster area; price gouging laws short circuit this effect. When prices rise after a disaster, consumers are encouraged to consume less of the good and leave some for others to purchase; price gouging laws short circuit this effect. Price gouging laws keep prices low after a disaster. This forces producers to produce more of the needed goods Price gouging laws keep prloes low after a disaster. This forces consumers to buy less of the good than they otherwise would Drag appropriations were here False Statement about Price Gouging