Thank you MMan for this post, I didn't want to look all of those resources up. I would like to also add the Econtalk podcast on "price gouging," which is a thorough discussion of the ends and outs of pricing and incentives during a crisis:
In addition to echoing your points, and additional two points:
1. There is no such thing as "the price" or "the value." In 1850 if you found oil on your land... your land is now worthless, couldn't use it for farming. In 2012, if you are dirt poor and own 1000acres of useless rock in east Texas that you bought for $30 an acre and oil companies find natural gas on... you are now literally the Beverly hillbillies.
2. It is a completely false dichotomy to say the choice is between plentiful water at $3/case and being gouged at $15/case (or whatever). The choice is between no water available at any store, or some water being preserved for truly dire situations at $15/case.