The case study is asking whether Price gouging is criminal or is it the free market working efficiently?
CASE STUDY UNIT 1
Price Increases after Disasters, In the News – Page 84
When a disaster such as a hurricane strikes a region, many goods experience an increase in demand or a decrease in supply, putting upward pressure on prices. Policymakers often object to these price hikes, but this opinion piece endorses the market’s natural response. Is Price Gouging Reverse Looting? By John Carney
Four dollars for a can of coke. Five hundred dollars a night for a hotel in downtown Brooklyn. A pair of D- batteries for $6.99.
These are just a few of the examples of price hikes I or friends of mine have personally come across in the run-up and aftermath of hurricane Sandy. Price gouging, as this is often called, is a common occurrence during emergencies……………………………………………………………………………………………………………….
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