Allege Price Gouging: Article Analysis

The article titled Florida Lawsuits Allege Price Gouging, discussed how establishments, specifically, Days Inn and Crossroads Motor Lodge, used price gouging after Hurricane Charley. Both establishments advertised rooms under $50.00 a night; however, once guest arrived to rent rooms they were turned away or told the price was higher than originally promoted (CNN, 2004). During this year, the Florida State Statutes stated, during a state of emergency it is considered to be “unlawful and a violation of s. 501.204” for establishments to change the price of specific products (Online Sunshine, 2017). The graphs that best fit this situation are A and D. To elaborate, graph A was chosen because the number of rooms Days Inn and Crossroads Motor Lodge offered decreased making the demand for them upsurge. I also chose graph D because the number of rooms available decreased which created a higher demand. Similarly, the article titled They Clapped: Can Price-Gouging Laws Prohibit Scarcity? …show more content…
The wreckage Hurricane Fran left behind was horrific. Due to power outages, heat and high humidity, people were left with scarce supplies (Munger, 2007). One item survivors of Hurricane Fran desperately needed was ice (Munger, 2007). As a result, a group of men bought and sold ice to the hurricane victims for a large profit (Munger, 2007). The graph that fits this particular situation is D because the supplies, or ice, available to individuals decreased. Therefore, when these men brought a small quantity of ice to the survivors they were able to create a demand and as such raised the price of the