business and tech
posted by mark .
I need help on this question. "When disasters hit an area, the cost of everything seems to go up immediately: food, water, housing, gas and so forth. Explain why this phenomenon may be a good thing, using the laws of supply and demand".
thank you very much
The only ones who benefit from this situation are the merchants who sell this service. There's a low supply and a great demand.
However, I cannot say that it is a good thing. It's price gauging and it takes advantages of victims.
lets say that price gauging didn't happen,and the merchants sell the goods at the market price but with laws of supply and demand how would that be a good thing?