Which of the following is an example of price gouging?
A) selling World Series Tickets for $300
B) a New York hotel tripling its room prices after 9/11
C) having to pay above the seller's original asking price for a home
D) increasing the price of lawn movers in the spring and summer

Question

Quizplus · Accepted Answer

Price gouging refers to a seller significantly increasing the price of goods or services beyond what would be considered fair market value in response to an emergency situation. In this case, the New York hotel tripled its room prices after 9/11, which is an example of price gouging. Selling World Series Tickets for $300 (A) may be considered high, but it does not fall under the definition of price gouging. Having to pay above the seller's original asking price for a home (C) is a result of negotiation and market demand, not price gouging. Increasing the price of lawn mowers in the spring and summer (D) is a common marketing practice due to seasonal demand and does not constitute price gouging.

Which of the Following Is an Example of Price Gouging