When DaimlerChrysler originally introduced the PT Cruiser, demand was so strong that some dealers would sell one only if the customer was willing to pay several thousand dollars over the sticker price. This is an example of
A) effective business practice.
B) price gouging.
C) collusion.
D) profit maximization.
E) price lining.

Question

Quizplus · Accepted Answer

Price gouging refers to the practice of charging exorbitant prices for products or services in high demand, and it typically occurs during times of emergency or shortage. In this case, the high demand for the PT Cruiser allowed dealers to engage in price gouging by selling the cars for much more than their sticker price.

When DaimlerChrysler Originally Introduced the PT Cruiser, Demand Was So