"Price gouging" laws are types of _____ and often result in _____ of a scarce good.

Question

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Price gouging laws are a type of price ceiling, which is a legal maximum price that can be charged for a good or service. When applied to a scarce good, this often leads to shortages as suppliers are unable or unwilling to provide the good at the lower, regulated price. This is why many economists argue that price gouging laws actually exacerbate shortages during times of high demand, such as natural disasters or pandemics.

"Price Gouging" Laws Are Types of _____ and Often Result