economics 326

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What do you think of the following pricing situation?


My husband and I went on vacation to Alaska. We spent one night in a resort that was in the middle of nowhere. The meal prices etc. were super high because there were no other options on places to go. Ethically speaking do you feel there is a difference in the following two situations? 

A – At a resort the owner chooses to charge $5.00 for a bottle of water. As a consumer you elected to go to the resort and can elect to leave if you would like.

B – You live in an area that had flooding. It’s the town you live in and you don’t have anywhere else to go. Resources are temporarily tough to come by. Although you would normally pay $1.00 at the convenience store for a bottle of water, the store is now charging $5.00 for the same bottle of water.

Is it ok in both cases? Is it wrong in both cases? Is it ok in one case, but not the other?

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