Be Thankful for Price Gouging in Houston

from thedailybell:

Did the hotel crew need the rooms? No. They came to “cover” the storm.

But people fleeing Hurricane Harvey were in desperate need of hotel rooms. And the news crew was complaining about paying a high price.

The news team reported on the terrible incident of gouging. But they actually demonstrate exactly why prices need to go up when demand goes up.

I wonder if they decided to bunk up together and buy fewer rooms because of the high price. After all, that is the whole point of “gouging.”

When demand shoots through the roof, the reason prices need to go up is not simply business greed. Higher prices slow demand.

One family might choose to stay with their annoying inlaws instead of getting a room. Great, one more spot for someone who doesn’t have family in the area.

Another family with three kids might decide to book only one room instead of two. Again, this helps keep rooms available for other people in need. Yes, they will have to spend a bit more, but they will have a place to sleep.

The basic economics of supply and demand is apparently something neither this news crew, nor the Texas Attorney General’s office understand.

Read More @ http://www.thedailybell.com/news-analysis/be-thankful-for-price-gouging-in-houston/