Responding to classmates post below During natural disasters the prices are increased to to increased supply and demand for the selective population to which the natural disaster is occurring. People panic and will pay more for goods due to scarcity of resources when the population has to prepare or recover from damages due to the natural disasters. As you can see during this pandemic of the Corona Virus, the population of the World’s Countries have been paying increased goods prices in order to live comfortably during quarantine and isolation and to feed themselves and their families. Businesses have to increase supply and demand while maintaining an equilibrium price due to shortages in the Economy and its employment decline. Price gouging makes up for the loss of wages for the Supplier and pretty much puts pressure on the Corporations that buy their goods to pay more and charge that price increase to satisfy population demand. Depending on certain State laws here in the United States, price gouging is illegal and businesses that ignore the Law get fined a very large amount of money and can be put in Federal Imprisonment for taking wrongful advantage of their customers. “General Business Law prohibits such increases in costs of essential items like, food, water, gas, and generators, batteries and flashlights, and services like transportation during natural disasters or in the events that disrupt the market” Mankiw, Gregory N. (pg. 84 2003-2005) NY AG release. Graph A is appropriate for this topic, because consumers are willing to pay more for all possible quantities of goods. In conclusion, price gouging isn’t fair for the consumers cannot afford those goods.