>I still don't understand why price gouging is not accepted. Only high prices are an incentive for new producers to enter a market. Or rather: high prices promise huge return on investments so that investors allocate money for producers to open new production facilities.
Price gouging only applies in circumstances where supply is fixed for all intents and purposes, so it's purely an act of taking advantage of people in a crisis because you can. Anyone who can ramp up production is already ramping up as much as they can.
In circumstances where it is accepted, it actually leads to bigger shortages since people benefit from hoarding.
Price gouging only applies in circumstances where supply is fixed for all intents and purposes, so it's purely an act of taking advantage of people in a crisis because you can. Anyone who can ramp up production is already ramping up as much as they can.
In circumstances where it is accepted, it actually leads to bigger shortages since people benefit from hoarding.