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.

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