Which scenario best exemplifies 'price gouging'?

The scenario that exemplifies 'price gouging' is when a gas station charges significantly higher prices during a fuel shortage. Price gouging occurs when sellers increase the prices of goods or services to an unreasonable level, especially during emergencies or times of crisis, exploiting consumers' urgent needs for essential items. In this case, the fuel shortage creates a situation where consumers are desperate for gasoline, and raising prices takes advantage of their necessity, making it a clear example of price gouging.

In contrast, the other scenarios do not reflect this practice. For instance, selling winter coats at regular price during a snowstorm demonstrates normal business practices and fair pricing, rather than exploitation. Offering discounts during happy hour is a promotional strategy aimed at attracting customers rather than taking advantage of a crisis. Similarly, clearing out old inventory at low prices is a common retail practice designed to make way for new products, not a manipulation of prices in response to urgent demand.