Question

Price gouging is _____ a. irrational behavior that violates economic logic. b. a natural response to a sudden increase in demand. c. not subject to economic analysis, because it is illegal. d. a precisely defined concept that leaves no room for dispute or disagreement.

Answer 1

b. a natural response to a sudden increase in demand.

Step-by-step explanation:

Price gouging -

It refers to the situation , when the seller increases the price of his services and goods to a very high level , which is a unethical situation , is referred to as price gouging .

The situation of price gouging , is very commonly observed in any natural disaster , where due to shortage of foods and other item , the price of the food increases to a very high price , is referred to as price gouging .

Hence , from the question,

The correct option is b.