Microeconomics Research Assignment EASY ( WEEK 1 )

Running head: RESPONSE 1

RESPONSE 2

Response

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I agree hotel price gouging is not the best strategy to take when a natural disaster hits a certain place. A natural disaster refers to an adverse event resulting from a natural occurrence such as hurricanes, eruptions, tsunamis, and earthquakes. Natural disasters are catastrophic, like Hurricane Charley, that to loss of lives, property and thousands of other individuals were left homeless. The only option they had was to seek shelter in hotel rooms. However, most hotel managers increased the hotel prices during such a situation due to the high demand for the rooms. Taking advantage of people when they are in need is not the right strategy to make profits. Hotel owners should empathize with these individuals since there are not in a better position to pay much money. Nevertheless, price gouging can bring numerous benefits to a hotel, especially when tourists have arrived in the area. Hotel owners should first analyze the situation before agreeing on increasing prices as much as the demand is high.

Reference

Zwolinski, M. (2008). The ethics of price gouging. Business Ethics Quarterly, 347-378.

Reference

Zwolinski, M. (2008). The ethics of price gouging. Business Ethics Quarterly, 347-378.

Reference

Zwolinski, M. (2008). The ethics of price gouging. Business Ethics Quarterly, 347-378.