You are to watch an ABC news clip about price gauging. This video focusing on price gouging after Hurricane Katrina, a Mississippi law against price gouging is in stark contrast with prominent economists arguing that price gouging is good. After natural disasters, some businesses raise prices. Some people buy several generators, and then drive hundreds of miles and sell those generators for twice the price. Offer opinions on “Is it evil to exercise price gauging?” Keep in mind that we are learning on how to use positive economics to analyze an economic problem. Make sure that your answers use Microeconomics concepts to support your opinion. This paper is more like an argumentative paper, so you should be able to address the ideas on both sides (e.g., yes it is and no it is not evil.) You should first summarize the video and then offer your opinions.
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