Price Gouging

Price gouging is an event or situation in which a seller prices tangible goods or intangible services at a price level significantly higher than is considered acceptable, reasonable, or fair. Setting prices at unreasonably high levels usually occurs when consumer demand for particular goods abruptly increases or industry supply of those goods abruptly decreases. Recent abrupt changes in demand and supply are closely related to natural disasters like earthquakes and hurricanes. Price gouging tends to be a short-term price increase in a confined geographical area, and usually, it affects essential products like food, medicine, clothing, shelter-related items, and equipment used to cope with natural disasters. Other terms that are sometimes used to describe price gouging are speculation and profiteering. One can be accused of price ...