_______________ is said to occur when firms with market power price products "too high."

Question

Quizplus · Accepted Answer

Price gouging refers to the act of pricing products unreasonably high during times of emergency or other market disruptions when demand increases suddenly, and supply decreases. It is usually done by firms with market power, who take advantage of the situation to make excessive profits. Predatory prices refer to pricing products very low to drive competitors out of the market, while price discrimination refers to charging different prices to different customers based on certain characteristics. Penetration pricing refers to pricing products very low initially to gain market share quickly.

_______________ Is Said to Occur When Firms with Market Power