Topic 1: Demand, Supply, and Price ceiling Foodstuff Traders Association President Khalil HajjTawfiq on Monday stressed that food prices have increased in the local market, notably the prices of vegetable oils, rice, sugar, coffee and powdered milk in Amman. Hajj Tawfiq's remarks came during a press conference, in which he said that the Kingdom has enough food reserves and imports have not stopped despite the Russian-Ukrainian crisis, noting that price increases began with the outbreak of the pandemic and the scarcity of crops in the countries of origin.

Hajj Tawfiq, who is also head of the Amman Chamber of Commerce, said that setting price

ceilings for some food items is "not a suitable solution to control prices", stressing the need

to "stop this procedure that sometimes affects the flow of imports".

Apply what we have learnt in "Demand-Supply" and Price Control" to explain

1. what drives the price hike in Amman.

2 How does the price ceiling affect the flow of imports?

3. Do you agree that the price ceiling is not a suitable solution? If yes, should the

government take note of some issues when implementing the price ceiling? If not,

what other measures can the government take?