Government should not be in the business of preventing price gouging

posted by
December 28, 2010
Show-Me Institute
by Christine Harbin  
Posted in Commentary

"Changes in price are important for allocating scarce resources. This is why the price for plywood increases during hurricanes — individuals living in disaster-ridden areas have a higher demand for plywood than, say, a person building a treehouse elsewhere in the country. Because the former individual has a more critical need for the resource, he or she is willing to pay more for it. Those who think that the price has grown too high will refrain from buying the product, which leaves more available to be purchased by those with a higher willingness to buy." (12/27/10)  

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