People often complain about price gouging after a disaster such as a hurricane. Suppose the government successfully prevented price increases due to the disaster. We would expect reconstruction to take longer because the quantity supplied of new materials would increase more slowly. reconstruction to take less time because the demand for materials would increase faster. reconstruction never Occur. reconstruction to take less time because the government could rebuild more quickly when people are not in the way.

People often complain about price gouging after a disaster such as a hurricane. Suppose the government successfully prevented price increases due to the disaster. We would expect reconstruction to take longer because the quantity supplied of new materials would increase more slowly. reconstruction to take less time because the demand for materials would increase faster. reconstruction never Occur. reconstruction to take less time because the government could rebuild more quickly when people are not in the way.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST4: Keynes And Hayek: Contrasting Views On Sound Economics And The Role Of Government

Section: Chapter Questions

Problem 5CQ

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