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An aggressive crackdown by Egypt's interim government on smuggling tunnels between Egypt and the Gaza Strip is crushing the Palestinian enclave's economy, sparking concerns it could fuel a militant backlash. To get around the blockade, Gazans smuggle goods, and the tunnels closure has sent prices soaring in the past three weeks. Many Gazans now buy the Israel-shipped fuel for seven shekels ($2) a liter - more than twice as much as that smuggled from Egypt. The cost of cement, another major smuggled item, has reached $1,500 a ton from $1,000, said Ahmad Abdul-Rahman, a merchant. Show the effects in the Gaza market for goods and services.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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