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Maroc Maroc - Kuensel - Global - 31/Aug 06:14

Of cars, bans, and the artificial demand

Following the lifting of the import ban on cars, there was a sudden uproar when consumers realised a huge increase in taxes for new cars. While the taxes may be a cause, another reason for the cost escalation, in my view, is the ban itself. Simply put, if you ban, or limit something, the price of the commodity increases. This phenomenon is called artificial demand, or artificial scarcity - in microeconomics.

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