Answer to Question #135808 in Macroeconomics for Jishoane

Question

Is it better to crack down on price gougers or spark a reform on counter-
productive laws instead?

Answer 1

Price gouging occurs when a trader increases the prices of goods or services  to a level much higher than is considered reasonable or fair. It normally occurs after a supply or demand shock.

I think it is better to spark a reform on counter productive laws because the statutory prohibitions on price gouging are the most effective, thus protecting people from exploitative increases in the costs of essential goods, once a state of emergency or shock on demand and supply has been declared.