- Negatives of price gouging include12:
- Exploitation and unfairness towards vulnerable consumers in times of crisis.
- Inflation and instability, as producers are incentivized to charge as much as possible for their goods and services.
- Inefficient displacement activity.
- Ability to pay does not equal need.
- Libertarian economics breaks down the social contract.
- Altruism.
- Hard to predict.
- Government intervention.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.On the other hand, price gouging can be seen as exploitative and unfair. It can be used as a way to take advantage of vulnerable consumers in times of crisis. It can also lead to inflation and instability, as producers are incentivized to charge as much as possible for their goods and services.www.ablison.com/pros-and-cons-of-price-gouging/Arguments against price gouging
- Price gouging can lead to inefficient displacement activity. ...
- Ability to pay does not equal need. ...
- Libertarian economics breaks down the social contract. ...
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- Exploitation during Vulnerable Times: During Hurricane Katrinain 2005, certain hotels, gas stations, and airlines took advantage of the situation by raising their prices by up to 1000%. This showca...
- Inaccessibility of Basic Essentials: After Hurricane Sandyin 2012, some merchants grossly inflated prices for vital items like generators, batteries, flashlights, and water. A gas station i…
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