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Notes -
Could you elaborate on what exactly isn't right in that sentence? I don't see how your example contradicts what I said. When the marginal cost or demand increases, producer would adjust its price up, naturally. But when producer compensated all his expenses and still raises price -- it benefits producer at a cost of consumers (this raise is not a Pareto improvement).
My criticism is that in basically all IRL cases called 'price gouging', what economics tries to capture in marginal cost or demand has increased in some way, and people are just claiming it isn't.
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