Question: Price Quantity supplied Normal times quantity demanded Hurricane quantity demanded $1,500 100 10 40 $1,200 80 20 80 $900 60 30 120 $600 40 40
| Price | Quantity supplied | Normal times quantity demanded | Hurricane quantity demanded |
| $1,500 | 100 | 10 | 40 |
| $1,200 | 80 | 20 | 80 |
| $900 | 60 | 30 | 120 |
| $600 | 40 | 40 | 160 |
| $300 | 20 | 50 | 200 |
| $0 | 0 | 60 | 240 |
Suppose the New Orleans city council passes a price gouging law: during a hurricane, the price of a generator cannot increase by more than 50% above thenormalmarket equilibrium price. During a hurricane there would be a shortage of______ generators.
If there were no price gouging law, consumers would have to pay a) $____ during a hurricane, but they would be able to buy b)_____ generators.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
