A convenience store owner who suddenly triples the price for batteries may suffer when the crisis ends. The seller could face the wrath of consumers who felt exploited or "gouged." But that does not change the seller's right to charge whatever he or she feels the market can bear. In addition, the disaster-driven higher price creates opportunities for people outside the area to rush in supplies. Capping profit, in a time of sudden and severe shortage, creates a disincentive on the part of others to come in with supplies.
Now what about "dumping"? Dump: to sell (a commodity) in a large quantity at a low price, esp. in a foreign market at a price below that of the domestic market. (Webster's New World College Dictionary, Third Edition)
American lumber producers, for example, citing government subsidies for the Canadian lumber industry, accused the Canadians of "dumping" their lumber on the U.S. market at up to 75 percent below cost. Yet General Motors, according to Jeff Bennett of Bloomberg News, sold each of its vehicles, for the first six months of this year, at an average $1,200 loss. This compares to Toyota's $1,488 profit per car. If, by definition, "dumping" means selling the product below cost, then why can't Toyota and other competitors accuse GM of unfair competition?
Who wins when businesses "dump"? The consumer. True, some competitors face disadvantages when other countries subsidize their domestic businesses. Many American companies claim to support free trade, so long as it's "fair." But a business cannot long survive by selling products below cost. And governments that provide subsidies burden that country's taxpayers. Despite the "unfairness" to competitors, consumers benefit. And our own Congress continues to provide protection to American farm growers against foreign competition. And auto makers pressured Congress into forcing foreign automotive manufacturers into "voluntary" import quotas.
Opponents of "gouging" and "dumping" make the same argument -- that government should halt a voluntary transaction between seller and buyer. It assumes the existence of some all-knowing, all-wise party with the judgment to guarantee that prices remain "affordable" or "appropriate" or "fair."
This is precisely why we have a market-driven system. It is known as capitalism.