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

Question

Quizplus · Accepted Answer

Price gouging laws are a type of price ceiling that prohibits sellers from raising prices above a certain level during emergencies or times of crisis (such as natural disasters or pandemics). These laws are aimed at protecting consumers from being taken advantage of during times of scarcity. However, price ceilings often result in shortages of the scarce good because there is less incentive for suppliers to produce and offer it at the lower price.

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