The Attorney General's of states along the East Coast this past week released statements to vendors across their states ordering them not to increase their prices on essential goods and services in the aftermath of Hurricane Irene. Economic reasoning tells us that a price-ceiling below the market price will create a different kind of problem for consumers than paying a couple of extra dollars. Find out more by checking out this Econedlink Lesson: Marketplace: Price Increase or Price Gouging?.
Is there such a thing as Price Gouging? What information do prices provide for consumers and producers on an everyday basis? And in the aftermath of a natural disaster?