Analyze a policy only from the economic dimension (prospect) without being dragged into analyzing any other dimensions unless they have a significant economic impact.

When policymakers are about to make an important decision, they consider many dimensions to analyze first. Examples of these dimensions are the economic dimension, the social dimension, the environmental dimension, and the political dimension. Because these dimensions are usually integrated, it is, in many times, challenging to analyze each dimension separately from the others.

In this discussion, you will try to practice this challenging process and analyze a policy only from the economic dimension (prospect) without being dragged into analyzing any other dimensions unless they have a significant economic impact.

Now, consider the “price gouging” Law in Texas, where sellers of necessities are prohibited from raising their prices significantly during severe disasters, such as hurricane Harvey or any other government-declared emergencies. You will use your learning from the textbook (the “market equilibrium and policy” chapter) to review an “article” and then answer the following prompt question of the discussion.

Prompt Question:

Using the following “article” and the textbook explanation in the “chapter 3,” as price “price gouging” is clearly a government intervention in the free market (a price-control policy); from a purely economic perspective, discuss the potential pros and cons of the “price gouging” law in Texas.

The Article:

Hill, A. (2017, September 1). “Economists don’t think price gouging is a problem. But what about our social values?” Weather Economy. Marketplace. org. https://www.marketplace.org/2017/09/01/why-economists-dont- think-price-gouging-problem/

Instructions for your original post (Mandatory):
You need to use both the textbook analysis (in chapter 3) and the article (Hill, 2017) to answer the prompt question of the discussion.
Focus on the “economic” reasoning and do not get dragged into politics or social measures when answering the prompt question of the discussion, unless there is a direct economic perspective involved, and cannot be separated.
Participants must create a thread in order to view other threads in this forum.
Only your first “thread” you create will count as an original “post” when grading your discussion.
You have to meaningfully reply to at least two “other” posts (you have to show in your reply that you understand the work in the post you are replying to, and how it is related to (different from) your post-analysis).
In your replies, you cannot “just” say a statement such as “I agree” or “good work” or any other statements that do not show your understanding of the analysis posted by other students, and how it is related to your post.
You can reply to as many students as you want, only the best two replies will count toward your grade (not necessarily the first reply such as the case with the discussion “post”).
No minimum wording is required; however, your post and reply have to show a thorough understanding of the topics covered in the discussion.
A reply has to be made to an original post, even if it is your own post, but not to another reply. Only a reply to an original “post” will be graded as a “reply.”