Price gouging is great topic to think about. If a local hardware store raises the price of say sump pumps (generators during a power outage, snow shovels during a snow storm) during this flooding we could argue they are responding to supply and demand. My guess is not many of them will raise their prices because they are not in the market for the short run, but intend to have repeat customers. They would be foolish to take advantage of customers for these short run profits if they will potentially lose these customers in the future.
However, by enforcing this price gouging law, the governor de-incentivizes people from outside the flooded area from purchasing sump pumps at low prices in their towns, renting a truck to bring them to our flooded area, and then sell them for a profit. For this to happen, they have to be able to make enough money to justify the investment and risk. That is, they need to charge a higher price than the "store" price.
What's the result of enforcing the gouging law? Our local hardware stores will run out of sump pumps at the store price and no entrepreneurs will truck them in from other areas. So some of us will have flooded basements. The cost of this damage will be much higher than the "gouged" price someone might have to pay for the pump. Second, the sump pumps at the hardware store will go to the first customers who arrive there and often the price they pay will be the price of waiting for the store to open or a new shipment to come in. I know, I had to wait 8 hours to purchase a generator during an ice storm two years ago. If entrepreneurial "price gougers" are allowed to come in and sell their higher priced pumps, then some people who have a high opportunity cost of time will pay the higher price, install their pumps and go to work to earn some money. More people will have sump pumps and damage will be less.
The conclusion - although none of us like to pay above the market price for an item, during an emergency we will value it more and may be willing to pay more to solve our problem. If the government intervenes to "help us" by enforcing these price gouging laws, the government may actually be making us worse off. We will have fewer pumps and more damage.
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