Question

Price gouging occurs when a supplier raises the price of a product beyond a point that is considered "fair." In practice, price gouging often accompanies a panic or a natural disaster. A quick Google News search for "price gouging" returns more than 8 million results, with many stories coming from the past several weeks in the United States. Based on what you've learned so far in our course as well as your own personal values, do you think price gouging is justifiable? Why or why not?

Answer 1

Answer - No , price gauging is not at all justifiable . This practice leads to the exploitation of the consumers by taking the advantage of the adverse conditions in which the supply is disrupted but the demand is high. The welfare decreases due to the practise of earning heavy profits in adverse conditions by charging excessively high prices from consumers. Thus , it is not at all an ethnic practise. That is why the practise of price gauging has been declared as illegal in many parts of the world.