Daily Archives: December 8, 2008

1 post

Price gouging or not?

There’s a simple duality of laws at work in a market economy known as the supply/demand relationship. Generally, if demand for a good increases, then the supply of that good scales up accordingly. This keeps the price of that good somewhat level.

However, if the supply cannot match a sudden spike in demand, then the equilibrium is skewed, and prices rise. That’s what’s happening in a segment of the gun industry right now.