If a natural disaster just reduced the supply, but the demand remained the same, what happens to the price?
If a natural disaster just reduced the supply, but the demand remained the same, what happens to the price?
In the area of the disaster, such as in NO, the demand would not remain the same, as everything is underwater and unusable. And the town is a ghost town, so there is no demand to be had, as there will be no people to demand it. NO is dead, for all ostensible purposes.
However, you have just set up the perfect condition for price gouging, haven't you. At least amongst unconscionable shysters who would financially attempt to feed off of other people's grief. Do you include yourself as one who would price gouge? Profit off of people's desperation? Are you one of them?