What is the term used to describe when a store raises rates before a storm to take advantage of people. its illegal.
2007-08-31 03:56:36 · 8 answers · asked by topgun77 2 in Education & Reference ➔ Words & Wordplay
Price gouging.
2007-08-31 04:01:31 · answer #1 · answered by xxandra 5 · 3⤊ 0⤋
The term is called price gouging, but is frequently over-used, and if this trend of over-use continues, will actually harm the consumer.
Real life example. My brother-in-law works for a hardware store. Plywood normally sold for $18 a sheet. Prior to Hurricane Ivan, all of the plywood sold out at $18. So that customers would have access to plywood to protect their property, the owner called his supplier who diverted a truck load of plywood headed hundreds of miles away. The added cost of the "rush order" and added transportation made his cost of the plywood $28 a sheet, which he sold at $30 a sheet.
He was reported and investigated for price gouging, because he sold the same item at $18 the week before.
He said that next time, he wouldn't do that again. He would have been better off not trying to help his customers.
2007-08-31 11:31:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Price gouging is a frequently pejorative reference to a seller's asking a price that is much higher than what is seen as 'fair' under the circumstances.
In precise, legal usage, it is the name of a felony that applies in some of the United States only during civil emergencies.
This is my help from Washington, D.C. USA.
2007-08-31 11:13:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Gouging.
2007-08-31 11:03:53 · answer #4 · answered by Monique 5 · 0⤊ 0⤋
Profiteering.
2007-08-31 13:23:18 · answer #5 · answered by picador 7 · 0⤊ 0⤋
ITS CALLED PRICE GOUGING AND IS A FORM OF EXTORTION AND IS ILLEGAL IN MOST STATES
2007-08-31 11:06:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yah, gouging.
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2007-08-31 11:03:54 · answer #7 · answered by Kacky 7 · 0⤊ 0⤋
supply and demand
price gouging
2007-08-31 12:17:39 · answer #8 · answered by Anonymous · 0⤊ 0⤋