Question: Case Study $1$: Demand$-$Based Dynamic Pricing After Hurricane Sandy The Press of Atlantic City, a Pleasantville, New Jersey, newspaper, reported on July $23,2013,$ that two Atlantic County hotel operators had settled with the state to reimburse customers who were "excessively and unjustifiably" charged for lodg$-$ ing immediately after Hurricane Sandy, the

Case Study $1$: Demand$-$Based Dynamic Pricing After Hurricane Sandy The Press of Atlantic City, a Pleasantville, New Jersey, newspaper, reported on July $23,2013,$ that two Atlantic County hotel operators had settled with the state to reimburse customers who were "excessively and unjustifiably" charged for lodg$-$ ing immediately after Hurricane Sandy, the deadliest and most destructive hur$-$ ricane of the $2012$ Atlantic hurricane season and the second$-$costliest hurricane in U$.$S$.$ history. These are the first reported settlements to come from New Jersey's investiga$-$ tion into claims of price gouging at hotels after the storm, according to a statement from the attorney general's office. Eight businesses, including gas stations as well as hotels, were part of the settlement. The settlement payment included civil penal$-$ ties, attorneys' fees, and investigative costs. With these settlements and the first two price$-$gouging settlements announced in April, the Division of Consumer Affairs has assessed a total of $$328,844\mathrm{.}72$ against companies, according to the statement. Discussion Question Why were hotels overcharging people who needed a place to stay after Hurricane Sandy devastated their homes? How can this be related to demand$-$based dynamic pricing? What seems to have gone wrong?