Price Gouging A Misconception
PRICE GOUGING - A MISCONCEPTION by Denny Garns Recently there have been several cases of reported price gouging - particularly in the area of energy supply. The rationale for the accusation is that the corporations or utilities involved are selling their product at a much higher price than their costs seem to justify. ... Another example is the recent electrical energy price hikes in the California region. ... As proof, the exessively high profits they were enjoying was cited and called price gouging. ... Lets assume that they had kept the price of energy at its original level. ... The bottom line is that if the suppliers are at full capacity, and they are being prevented from increasing capacity, dont accuse them of price gouging.