Which of the following is true of price gouging?
A) Price gouging is a natural phenomenon.
B) Laws limit price gouging between 50-60 percent.
C) State officials warn against price gouging.
D) Change in government leads to price gouging.

Question

Quizplus · Accepted Answer

State officials often warn against price gouging during times of crisis, such as natural disasters or pandemics. This is because price gouging involves businesses or individuals taking advantage of these situations to greatly increase the price of necessities like food, water, or medical supplies. There are often laws in place to prevent price gouging, but they vary by state and do not set a specific percentage limit, as stated in option B. Option A is not necessarily true, as price gouging is caused by factors like market manipulation or scarcity, not necessarily a "natural" occurrence. Option D does not necessarily have a direct correlation with price gouging, as changes in government do not always lead to price increases.

Which of the Following Is True of Price Gouging