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In the two articles, “They Clapped” and “Florida Lawsuits Allege Price Gouging” they both discuss a natural disaster that was caused unexpectedly, resulting in companies to take full advantage of this opportunity and spike prices up, knowing people will have no choice but to pay it. During the hurricane in Florida, millions of homes were destroyed which led people to having to live out of hotels. This is when hotel businesses would raise the prices of the hotel rooms in order to collect as much revenue as possible because they knew people would be turning to this only outcome.
Price gouging can be a beneficial thing as well as a non beneficial thing. Price gouging is, “Price gouging occurs when a seller increases the prices of goods, services or commodities to a level much higher than is considered reasonable or fair.” This is a financial advantage to the government, town/city, state, and business owner. However, this could lead to less customers purchasing their product due to the outrageous chargers they would be charged. It is also not good for the community, sometimes this can lead to major financial struggles and debt in communities.
I believe graph D best illustrates what is happening. This is because prices increase as rooms are limited.
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