"gouging"

One of the earliest and most noticeable effects of COVID-19 was the mad rush on common household items such as toilet paper. The result was that some households had enough toilet paper to last for years while others were forced to clean themselves by other means, such as napkins and washcloths. The prolonged empty shelves were not caused by the coronavirus, but rather were a price phenomenon. That rising prices are often deemed to be “gouging” resulting from greed culminated in a massive shortage of toilet paper. In this article we illustrate why it is best to let prices fluctuate with supply and demand, and why when they are not allowed to move freely shortages inevitably occur.