The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 15

Do you have a useful definition of price gouging ? When is a demand induced price increase considered price gouging, and when isn't it? Does your answer depend on the speed or level of the price increase? Does it depend on the type of good? When real estate prices surged a few years ago (the so-called "housing bubble"), why wasn't that called price gouging?