Producers Were Accused of Price Gouging as the Price of Bottled

Essay

Producers were accused of price gouging as the price of bottled water soared after Hurricane Andrew.Consumers clamored for price controls to keep bottled water at pre-Andrew levels.Use supply and demand analysis to graphically show the effect of setting a price ceiling on bottled water after Hurricane Andrew at the pre-hurricane equilibrium price.Use your graph to assist in explaining the likely unintended effects of such a price control.Be sure that your graph is completely and correctly labeled.