Price Gouging Quiz

Price gouging is __________.

• a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services.

• considered to be raising prices too much on a good or service.

• the sale of a specific good at retail stores without the option to use coupons.

• the price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Buying far more of an item than one needs, in preparation for a natural disaster, is considered to be __________.

• economical.

• illogical.

• hoarding.

• frugal.

If, as a result of a natural disaster, suppliers raise the price of goods, that does all of the following except __________.

• reduces the quantity of items available for other customers.

• leads people to say the suppliers are price-gouging.

• increases the quantity of items available for other customers.

• incentivizes sellers to bring in more products that are needed.

During the last energy crisis, the federal government’s solution to rising oil prices was to __________, which led to gas shortages and long lines at gas stations.

• gouge oil prices.

• cap oil prices.

• require drivers keep their gas tanks at least half full.

• require fuel companies to reduce gas prices.

The main point of this video is that price gouging __________.

• reduces the incentive for retailers to bring in more of the products they need.

• allows greedy, selfish store owners to take advantage of desperate people.

• should only happen during normal economic times, not during natural disasters

• helps get supplies to those who need them most.