When managers take advantage of an unusual event by charging prices that consumers believe are too high, they are practicing:
A) Predatory pricing
B) Price gouging
C) Cost-based pricing
D) Illegal pricing

Question

Quizplus · Accepted Answer

Price gouging is the practice of taking advantage of an unusual event, such as a natural disaster or supply shortage, by charging prices that are significantly higher than usual. This is often considered unethical and may be illegal in some cases. Predatory pricing refers to the practice of setting low prices in order to drive competitors out of business, while cost-based pricing involves setting prices based on the cost of producing and distributing a product. Illegal pricing can refer to any pricing practices that violate antitrust laws or other regulations.

When Managers Take Advantage of an Unusual Event by Charging