Overview
Hurricane Sandy: Supply, Demand and Appropriate Responses to the Gas Shortage
Tasks: Buy this case and perform the following tasks:
- Read the case carefully and determine the issue.
- With the help of appropriate demand and supply graphs, show that was it a demand issue or supply issue or both? What would have happened to equilibrium price and quantity?
- How supplier responded to demand? Why did some people think that price gouging was happening? Do you agree with this statement?
- What the government did, and do you think it was an appropriate response?
- What are the future lessons for people and government to deal with these types of supply/demand issues?