University:
Elon University
Course:
ECO 1000 | Economics
Academic year:

2025
Views:

50

Pages:

1
Author:

omiliar74be

Understanding the Concept of Price Gouging Price gouging occurs when a seller spikes the price of a good higher than is considered reasonable or fair, particularly in response to a sudden increase in demand or a shortage. It is often seen during emergencies, such as natural disasters, when essential goods become scarce. Key Characteristics of Price Gouging Unreasonable Pricing: Prices are raised well above normal levels, exploiting consumers' needs. Emergency Situations: Commonly occurs during crises where access to essential goods is critical. Legal Framework: Many jurisdictions have laws against price gouging to protect consumers. Examples of Price Gouging During a natural disaster, a case where water bottles are sold at five times their regular price. Medical supplies, such as masks and hand sanitizers, being sold at exorbitant prices when a health crisis arises. Further Exploration For those interested in learning more about price gouging, you can explore the following resources: Federal Trade Commission - Price Gouging Nolo - Price Gouging: What It Is and What to Do Brookings Institution - Price Gouging and the Coronavirus Outbreak In summary, identifying price gouging involves understanding both the context in which pricing rises and the fairness of those prices. Protecting consumer rights remains a vital aspect of sales during critical times.

Understanding the Concept of Price Gouging

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