The first part is for you to watch a video clip about price gauging produced by Mr. John Stossel and answer a controversial question “Is price gouging evil, especially during a state of emergency?”.
This video focusing on price gouging after Hurricane Katrina, a Mississippi law against price gouging is in stark contrast with prominent economists arguing that price gouging is good.
After natural disasters, some businesses raise prices. Some people buy several generators, and then drive hundreds of miles and sell those generators for twice the price. Is this action of raising the price for a generator evil in your opinion?
Economics in the Media: John Stossel (John Frank Stossel is an American consumer television personality, author, and libertarian pundit. In October 2009, Stossel left his long-time employment at ABC News to join the Fox Business Channel and Fox News Channel. He left Fox in December 2016. He has joined Reason Magazine (Reason.com) since 2017 has his own online media show on Reason.com called “Stossel on Reason.” (source: https://reason.com/stossel/ (Links to an external site.))
The second part of the assignment is for you to respond to the questions addressed in the first part. State your opinion clearly with supporting arguments. Use the concept learned in this module to support your answer.
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