“Prices gouging” is the practice of raising the price of essential goods during a shock to demand. An example is the demand for facemasks in the summer of 2020. Increases in price often cause distress, which has led policymakers to consider banning price increases during crises. Consider the costs and benefits of this policy in a supply and demand framework.

“Prices gouging” is the practice of raising the price of essential goods during a shock to demand. An example is the demand for facemasks in the summer of 2020. Increases in price often cause distress, which has led policymakers to consider banning price increases during crises. Consider the costs and benefits of this policy in a supply and demand framework.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter20: Aggregate Demand And Supply

Section: Chapter Questions

Problem 11SQ

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