sudden increase in demand.
Yes, price gouging creates a deadweight loss.
Price gouging is considered bad by most people because it makes the price of things go up much higher than they should be, so that only the wealthy can afford them. In other words, it amplifies the suffering of the poor during a disaster. Many people think of gas prices when they think of price gouging.
Price gouging prevents poor people that need a good from purchasing it, while encouraging hoarding by wealthy customers who don't actually need what they're buying.
Price Gouging
Price controls prevent price gouging on items that are essential but either in short supply or else whose supply in controlled by one group.
Yes, price gouging creates a deadweight loss.
no because 4 special occasions certain families might not be able 2 pay 4 the raised prices due 2 price gouging
Price gouging is considered bad by most people because it makes the price of things go up much higher than they should be, so that only the wealthy can afford them. In other words, it amplifies the suffering of the poor during a disaster. Many people think of gas prices when they think of price gouging.
Price gouging prevents poor people that need a good from purchasing it, while encouraging hoarding by wealthy customers who don't actually need what they're buying.
Price gouging
Price Gouging
The most significant cause of the 1979 energy crisis in America was price gouging. The price gouging was done by the oil companies especially OPEC.
price gouging
yes
Economics suggests that price increases after disasters play an important role in encouraging conservation of resources in high demand and encourages extraordinary efforts to resupply resources that are vitally needed. The overall result is more efficient use of the limited amount of goods available to communities struck by natural disasters. When price increases are capped by price-gouging laws, shortages can be the result. Shortages, in which the good is not available to some consumers at any cost, are clearly worse for consumers hit by a disaster than having the goods available only at a high price.
investigative powers
The Pros of price gouging allows the vendor to "ration" out supplies so people only buy what they NEED! not what they want. The Cons would be that those in need would not have money for everything they need. I also hurts competition and the individual.