Price gouging of this kind is actually good. You see, you have a commodity that is in short supply locally. Jack up the prices, you keep the lines to a minimum. At the same time, other vendors have incentive to ship in extra supplies into that area to sell at higher prices that make the extra work worthwhile. In time, that limits how high the prices can go--at some point, you are going to see vendors not being able to sell at higher prices, and the price will be driven down again. Equilibrium will be found again. Then, once the crisis ends, prices go back down quicker since there is extra supply on hand.
It also encourages people to stock up on basics BEFORE needed. You are better off getting smaller quantities of supplies ahead of a disaster, at a time, to accumulate until you have a good stash. Then, once disaster hits, you can live a while off those supplies. Before those are depleted, hopefully "price gougers" from other areas have entered your area and the prices will be somewhat lower than without the outside supplies. This goes double for batteries and flashlights--I don't know how often stores run out of those things after a blackout.
The alternative to price gouging is empty store shelves. If people cannot sell at above normal prices, they simply will not move in. Depleted supplies can take months to replenish after the crisis. Usually, with empty shelves, you get fights. You get that last case of water, that last pack of batteries, that last can of food, and 50 others are pxxxed because there is no more. A fight often results. If vendors could "gouge", outside vendors could have added more supplies. Higher prices is better than fights. It is also better than wasting time waiting in line for that last case of water, that last liter of gas, or that last pack of AA batteries.
... OUTLAW