Answer to Question #288473 in Macroeconomics for Simarjeet

Question

When we first learned abut the coronavirus it was very difficult to find face mask to protect yourself .some people ordered mask from China and tried to sell at very high prices but the government declared this illegal price gouging and confiscated masks from these sellers and find them .Do you think the law against price gouging was good Government policy why or why not?

Answer 1

This is illegal speculation that harms the economy: overcharging and non-payment of taxes by speculators. Therefore, the government did everything right.