Question

A retailer that overcharges customers for small items at the point of purchase may be engaging in the unethical practice of

Answer 1

The unethical practice of overcharging customers for small items at the point of purchase is called price gouging.

Step-by-step explanation:

The unethical practice being referred to in the question is price gouging. Price gouging occurs when a retailer intentionally overcharges customers for small items at the point of purchase, taking advantage of the demand for those items or exploiting a lack of competition.

For example, during a natural disaster, when supplies are limited, some retailers may drastically raise the prices of essential goods such as bottled water or batteries, making it difficult for consumers to afford them.

Price gouging is considered unethical because it takes advantage of vulnerable customers and undermines fair competition in the market.