I've heard it explained this way...
Lets say a hurricane hits, oh... I don't know, New Orleans, and the power grid is interrupted for the foreseeable future.
Only two stores in the area (separate towns) stock generators, and each have only six generators in their stock.
'A' Town:
Local farm and ranch 'Store A' keeps the price as is. Their price is $300 each.
'B' Town:
Local farm and ranch 'Store B' decides to increase the price exponentially. Their price is $1,800 each.
Follow me here...
So,
a man in A town scrapes together $1,800 bucks and wonders over to store A and buys every last generator they have. Sets them all up, and his house is now purring along like it was before the storm. Nobody else in town is able to buy a generator because he decided to buy them all, and now,he has them all. He sits in comfort as everybody else just has to suffer through.
A
man in B town also wants several generators to run his house, but when he visits store B, he finds a very high price on their generators. He can only scrape together enough money for one generator and decides to just buy it for his fridge and freezer, and he can then get by just fine. A number of other families are able to pull together $1,800 and each get a generator, and their urgent needs are met as well.
Seems like "gouging" actually helped out a community spread the resources through the populace rather than produce hoarding.
End of the story goes like this...
Those without, complain about the evil business, and they press charges of price gouging. The authorities round up the generators that cost $1,800 and their sales records. They place all of this evidence in secure storage for the pending trial. Nobody in that community got to enjoy a powered fridge or freezer.