Analysis Of The Micro And Macro Economy

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Recommended: Inflation, unemployment and economic growth

In this article written by Dr Econ we see that he split up the problems into two sections; the Micro and Macro economy. In the Micro economy he sees that as gasoline prices increase, household budgets are having to be changed to suit this problem which leaves less money to be spent on other items that are vital for life. This also is why people can no longer buy luxuries for themselves and as I found in my questionnaire, 65% of people say that they can longer afford as much as they have before. 10 out of 12 females stated that they can no longer afford to buy luxuries for there families as well as themselves.
“Higher oil prices tend to make production more expensive for businesses”[Econ,2007]. This point relates to my main focus of this project, if oil prices increase, transport costs increase, shops prices increase and therefore customer spending decreases leading to the shops making less sales as people can’t afford it anymore and this cycle doesn’t have a happy ending for the retailer, in this case Pick n Pay.
Dr Econ states that oil prices increases are going to lead to increased inflation and will in turn reduce economic growth as people will be suffering. One of the questions i asked was, “what do you think the increase in pricing is due to?” and my second most answered one was inflation.
The increase in oil prices can also effect the supply and demand for goods other than oil, Econ made clear that the prices to produce them increase causes more of a economic issue. This is causing economic fluctuations and no one is doing anything to stop it.
High unemployment rate, low growth and high inflation are only a few of the problems that this constant increase is causing. In my questionnaire i asked workers of Pick n Pay if ...

... middle of paper ...

...ss of the increase.
Pick n Pay is trying to adapt to these changes and Mr Ackerman says that they have now had to retrain their staff and introduce new people. They have put a huge task on their hands but Gareth Ackerman declares that it is possible. Although Evan Walker is expecting a price war within the next few years amongst retailers, he claims they will get through it easily.
Pick n Pay struggles to get back on track but according to my questionnaires, Pick n Pay hasn’t disappointed their customers and majority of the people prefer to shop at Pick n Pay. They will get back on their feet and all us loyalty customers will see them through it.
Shevel ends by concluding that as long as we (the shoppers at Pick n Pay) stick with them, they will continue to do the best they can to fulfil our needs as a consumer as well as provide the best products as possible.

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