The high prices for ice in hurricane-devastated areas:
A) is not justified by the laws of supply and demand.
B) makes it difficult for consumers to find ice to buy.
C) signals entrepreneurs around the country that it is profitable to supply ice to these devastated areas.
D) provides an example of self-interested behavior in direct conflict with public interest.

Question

Quizplus · Accepted Answer

High prices signal to entrepreneurs that there is a high demand and potential profit in supplying ice to hurricane-devastated areas, encouraging them to increase supply.

The High Prices for Ice in Hurricane-Devastated Areas