Capstone Papers-price-gouging”
- The authors use water as their example good, but they do not address the issue of Lamborghini prices following a hurricane. Should people be allowed to “price gouge” with Lamborghini sales following a devastating hurricane? How about with Jeeps? Why might someone answer differently as to whether “price-gouging” is acceptable or not for water, Lamborghinis, and Jeeps?
- Is there a price for a single bottle of water that could be reached that would cause you to immediately get in your car with a case of it from Wal-Mart and speed down the interstate straight to Houston in order to make some money? $20/bottle? $500/bottle? How about $1,000,000/bottle?
- Do the authors leave out any downside of “price-gouging”? If so, what might be some negative consequences of allowing it during the aftermath of a national disaster?
