Price Gouging People Laws Argue Natural Increased Eslpod

Price gouging occurs when a seller quickly increases the price of something or some service when it is "in greatest demand" (when people want and need it very badly), typically during "natural disasters" (phenomena such as earthquakes, hurricanes, and floods). Price gouging typically involves "emergency supplies" like bottled water, "bleach" (a liquid used for cleaning, especially after a flood), flashlights, batteries, medicine, and food."

Many people feel that price gouging is "exploitative" (unfairly takes advantage of people who have many problems). However, other people argue that price gouging is simply a natural "response" (reaction) to increased demand. "Economics" (the study of how economies work) explains that suppliers' prices must increase when buyers want to buy more of something, and prices must decrease when buyers want to buy less of something. People who believe this argue that price gouging laws help to "prevent" (not allow something to happen) people from "hoarding" (buying a very large amount of something and storing it for the future), which would limit the amount of emergency supplies available to others. And some people even argue that price gouging gives businesses an "incentive" (motivation; a reason to do something) to provide emergency goods and services during natural disasters.

As of 2008, 34 states had "enacted" (created laws) laws against price gouging. For example, the state of California has "capped" (set a maximum limit or amount) any such price increases at 10 percent. The state of Florida has "banned" (not allowed) price gouging, unless the seller can "demonstrate" (show; provide) that the increased price is needed to "cover" (make up for; pay for) increased costs, such as the costs of paying employees more so that they will work during a natural disaster.