That, my friends, is profiteering. Not Capitalism. This guy should be prosecuted by the local D.A. Or a couple of Bubbas show up and distribute the largesse, gratis. Cocksucker.
In pure economic terms, it will be distributed to whoever needs it the most, or has the best use for it.
Here's another example: storm passes through and destroys an enormous number of homes.
If local hotels leave prices as is, the families that get there first rent several rooms each to spread out in, leaving nothing available for those coming a few hours later. If the hotels raised rates, people would squeeze together and more would at least have a roof over their head.
Another example: same storm.
Building materials and electricians/plumbers/contractors/ect continue to charge the same rates. No extra building supplies or tradesmen come to rebuild. Increase the prices and rates, and the materials and tradesmen flow in from elsewhere to rebuild.
It's just supply and demand and very short term distribution gyrations. There won't be many hoarders selling $20 gas, but if it's truly needed at least it's available somewhere. A few dollars more at the pump will discourage those that don't truly need it, and leave it for those who do.