@maxdancona,
maxdancona wrote:
3, The question is whether anti-price gouging policies have a positive effect or a negative one. Most economists believe that they have a negative effect, they lead to empty shelves.
Anti-price-gouging policies are to stop people from taking advantage of a situation in which a normal free-market response to price changes is limited by circumstances.
E.g. in a regular free market situation, someone who doesn't want to pay $50 for a sandwich or toilet paper has the option of choosing another seller with a better price.
In some situations, however, people may not be able to shop around for a lower price and then you have a situation where market freedom is curtailed by circumstances.
Under normal conditions, you as a supermarket manager could set your toilet paper price at $50/pack and see if anyone would pay just to avoid going to another store for toilet paper.
As to your notion about stimulating more production with higher prices, production is not currently the problem but rather supply-chain interference by fear and lockdowns. When the situation is back to a normal free-market, there is no reason the production costs changed from before the crisis.