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Candela del Barrio Rodríguez
on Nov 25, 2024

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In response to the general public's complaints about "price gouging" by sellers, the government could impose a price floor.

Price Gouging

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, often during a demand spike caused by a crisis.

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, typically above the equilibrium market price to maintain a fair or sustainable market condition.

  • Understand the impact of governmental actions, such as subsidies or price controls, on the supply and demand within the market.
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Farah ArishNov 30, 2024
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