After a hurricane hit Halifax, local retailers increased the price of milk and gas by 50% in one day, even though all other stores in the province did not increase prices. These retailers were engaging in
A) conflict-of-interest pricing.
B) sharp business practices.
C) crisis-based pricing.
D) price gouging.
E) It is not possible to tell from the information that is given.

Question

Quizplus · Accepted Answer

The behavior of local retailers who increased the price of milk and gas by 50% in one day after a hurricane hit Halifax is an example of price gouging. Price gouging is the practice of raising prices excessively in response to a temporary increase in demand or limited supply, usually due to a crisis or emergency situation. This unethical practice takes advantage of consumers' urgent need for certain goods and services and harms vulnerable individuals and communities.

After a Hurricane Hit Halifax, Local Retailers Increased the Price