Prices as information
Distinguish possible causes of a price change from moral judgments.
Prices can convey scarcity and willingness to pay, but a rise does not reveal its cause. Reduced supply, greater demand, transport problems, or market power are possible explanations. Look for evidence distinguishing them.
In an original classroom market, buyers will pay at most 9, 7, and 5 units; sellers need at least 2, 6, and 8. The first two matched trades have nonnegative gains; the third cannot satisfy both sides. This illustrates a boundary, not a guarantee of actual market outcomes.
Willingness to pay depends partly on income. A low bid may reflect limited means rather than little need. Price alone cannot answer how essential services should be distributed.
Make your understanding visible
Give two competing explanations for higher bread prices and one useful piece of evidence for each.
Compare with a reference response
Higher ingredient costs: examine input costs. Increased demand: examine sales, queues, or orders. Also check changes in quality, portion size, and season.