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".

Question

thank you very much

Answer 1

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.

Answer 2

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?