Price gouging is a term that is often used in chapter 1, the definition of price gouging is when the price of an item is higher than what the consumer wants to pay, the public calls it unfair for the price to increase, in items that they’re in need of which has led some states to pass laws against price gouging, the unreasonable prices that increase in items more than its justified amount by its cost, only after an natural disaster. When there is an unexpected increase in demand and decrease in supply for a good, market’s response by increasing prices just enough to restore the balance between the quantity supplied and the quantity demanded. For example, the sudden increase in demand for generators of the time period that leads up to a hurricane.
