The Economic Entity Most Likely to Engage in Price Gouging

question 156

Multiple Choice

The economic entity most likely to engage in price gouging is

• A) the manufacturer of the product,such as a Honda generator.
• B) a national big-box store,such as Target or Walmart.
• C) a local,regular supplier of the product.
• D) an individual or business who has a supply of the product somewhere else.
• E) a local resident who wants to get rid of his or her own product.

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Definitions:

Price of Belts

This refers specifically to the market value or cost at which belts are sold or purchased.

Demand

The desire and ability of consumers to purchase goods or services at a given price.

Hamburgers

A popular food item consisting of a cooked patty of ground meat, usually beef, placed inside a sliced bread roll or bun.

Demand Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product demanded.