In late-March and April, the prices for hand sanitizer dramatically increased. For example, on Amazon, a 2-ounce bottle of Purell was listed at $40; the pre-COVID price was about $2. Amazon delisted some of these sellers because they violated their pricing policy. Some states have laws that prohibit price increases during emergencies. Overall, do you support or oppose Amazon's and governments' intervention and explain why, including discussing how their interventions affect the equilibrium quantity and equity in the short run (when entry and exit of firms is not possible) and in the long run (when entry or exit of firms is possible). For equity, please analyze how the policy affects low- versus high-income populations

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The dramatic price increases for hand sanitizer during the COVID19 pandemic raised concerns about price gouging and consumer exploitation In response ... View the full answer