re: $99 for a case of water: Texas officials report price gouging post-Harvey

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The goods will disappear either way. Many people will not get access to them.

Solution 1) Price controls allow anyone and everyone to have access for a short period of time. Then the goods are gone and very few goods enter the market because there is no incentive to flood the market with goods.

Solution 2) People can charge whatever they want. Those that can afford it, buy the goods. The goods disappear in the short term but the market is flooded with more goods because there is an enormous incentive to enter the market as a seller. The price of the goods drops due to the influx of supply and the market reaches a new equilibrium with affordable goods.

Donated goods are entering the market under both solutions.

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