Asked by Mallika Khullar on Jul 22, 2024
Verified
Price gouging
A) Outlaw trade at prices above a certain price level
B) Outlaw trade at prices below a certain price level
C) Is an act of charging a high price to take advantage of shortages created by natural disasters
D) None of the above
Price Gouging
The act of charging excessively high prices for goods or services, usually during times of emergency or shortage.
- Analyze the effects of government intervention in the market, including taxation, price controls, and subsidies.
Verified Answer
CT
Chong Tse MengJul 28, 2024
Final Answer :
C
Explanation :
Price gouging is the act of charging a high price to take advantage of shortages created by natural disasters. It is unethical and can be illegal in some cases, as it exploits people's need for basic goods during a crisis. Outlawing trade at prices above or below a certain level would interfere with the free market and create other problems.
Learning Objectives
- Analyze the effects of government intervention in the market, including taxation, price controls, and subsidies.