WEEK 1 SURVEY

SURVEY: Assume that a hurricane has struck the coast of Florida causing massive destruction. As a result, the prices of many products like hotel rooms, water, plywood, etc. increase significantly. For example, let's say the price of plywood increases from a price of $10 a sheet before the hurricane to $30 a sheet after the hurricane.

QUESTION: To help the people of Florida should the Florida government pass a law keeping the price of these products (like plywood) to their levels before the hurricane struck (YES or NO)? Why or why not?

OR What should the government do, if anything?

Question 1 answers

Given Answers

In my opinion, the Florida government shouldn't do anything, as the economic situation will correct itself eventually 

I think the government has no business interfering with the laws of supply and demand.  These supplies are more scarce now that the hurricane hit so it is natural for the price to go up.  The government intervening would most likely cause these businesses to fall.

No, because of the government controls on products like this will hurt the ecoonomy when the crisis is over and the cost of plywood goes below the normal levels because of larger supply and stock.

I  think  knowing that  the  place has  been hit   by the  hurricane and needs money for  improvement  but  by  any  means  it  doesn't  give government the  right   to  increase the prices  of these things  such  as  plywood  , water  and hotel rooms  because  people  in  Florida  are  already  suffering  from this  massive destruction  and on top  of that  if  the  government  will increase the  prices it  wont be fair to  the  people  of  Florida . So  the  government  should  pass the law  keeping the  same  prices  and  use  the  tax  money  for  whatever  reason they  need  to .

The Florida government should not pass a law to keep prices down. I feel it is okay to raise the prices of plywood, temporarily, due to the new demand for plywood by the Florida consumer.  This new demand is going to make the company raise their price because of the lower supply.

No. If government pass such a law, it'd create scarcity of plywood and there will be no plywood at all.
Government may lower taxes which will effect plywood price. 

No, Florida government should not pass a law keeping the price of these products. 

Yes they should, and they already have laws like that in place but i cant remember what they are called.

Yes, the Florida government should pass a law keeping the price of these products to their levels before the hurricane struck because it will reduce lots of confusion among the people of Florida.  With massive destruction, people in Florida will be hopeless and need help from the Florida government.  Keeping the price of those products to their levels before the hurricane struck will be very helpful fot the people of Florida.

I think they should keep the prices the same as before the hurricane because now that the hurricane occured it caused so much damage there will be a greater demand for these products.

the government should do nothing at all; the path of least resistence will help the market equalize more quickly

I think that Florida government should not pass such a law, because it could harm those plywood businesses. They are also a victims of a hurricane and they do not do it just to make more money, they just want to get their money back. I think, though, that it is government that should play main role in this play and should help as much as possible and as much as needed to help those people out. Government could give some money help or some supplementary places of living, etc.

No, Florida should not pass a law to keeping the prices of the products fixed.  Creating such a ceiling would only keep producers from increasing the supply because there would be no incentive to make more product even if the demand was present.

If the government decides to do anything they should help people effected to buy the products at the higher prices.

I think in this situation the government should do nothing for a while and let the laws of supply and demand have a chance to bring about equilibrium. If price gouging is a concern, that can be addressed without passing laws to "lock in" prices which could harm businesses and consumers in the long run.

If the government want to help the people of Florida most: . Pass a law to make these "price-gouging" increases illegal returning the price to $ 10. Still the power is in the hands of large businesses like Home Depot because they all the time are excused, and honest people are misunderstending the situation. The goverment should increase the fine per violation to be $ 25 000 000.00 for businesses with income more then a $1 000 000.00 a year. Then they may help the small people.

I think the Government should not interfere with the pricing of plywood because due to the storm plywood is harder to find making it more valuable and worth more. The supply is low so the demand is high. Keeping the price the same pre-hurricane would lower the value of plywood altogether.