Amid all the news about Hurricanes Harvey, Irma, Jose, and now Maria, the issue of price gouging arose as people flocked to gas stations and supermarkets to stockpile supplies.

Many see gouging as little more than a way for producers to make extra money off of desperate people who are trying to prepare for the destructive force barreling towards their homes. On the surface, this seems like an accurate summation. Firms are in business to maximize profits, after all, and they respond to trends in supply and demand curves to achieve this.

Recommended Stories

The false economics of critical race theory

Retailers grapple with changing economic landscape

This is an energy shock, not an overheated economy