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Competition. We have government roads that are not flooded down which anyone can drive a truck full of produce/whatever to compete with the incumbents. Compet
by superuser2 12y ago
Competition.
We have government roads that are not flooded down which anyone can drive a truck full of produce/whatever to compete with the incumbents.
Competition is less likely to exist when the infrastructure is decimated. Until transportation gets rebuilt, the local stores that have water are the only games in town.
Price gouging is by definition when merchants set prices for basic survival goods higher than they would be in a normally functioning competitive market.
- pdonis 12y agoA normally functioning competitive market responds to changes in external conditions that cause changes in the relative scarcity of goods and services. Such changes should cause changes in prices, because the prices are signals that tell consumers about the relative scarcity of goods. If the price of bottled water goes up during a natural disaster, that's telling you, the consumer, that water is scarce and you should economize.