In this article written by Dr. Econ we see that he has divided the problems into two sections; the Micro and Macro economics. In microeconomics, he believes that as gasoline prices rise, household budgets must be adjusted to accommodate this problem, leaving less money to spend on other vital elements of life. This is also why people can no longer buy luxury goods for themselves, and as I found out in my questionnaire, 65% of people say they can no longer afford everything they owned before. 10 out of 12 women said they could no longer afford to buy luxury goods for their families and themselves. “Higher oil prices tend to make production more expensive for businesses”[Econ,2007]. This point relates to the main focus of this project, if oil prices rise, transportation costs rise, shop prices rise and therefore customer spending falls leading shops to make less sales as people can no longer afford it and this cycle does not have a happy ending for the retailer, in this case Pick n Pay. Dr. Econ says increases in oil prices will lead to higher inflation and will, in turn, reduce economic growth as people will suffer. One of the questions I asked was, “What do you think is causing the price increase?” and my second most answered question was inflation. Rising oil prices can also affect the supply and demand of non-oil goods, Econ has made it clear that rising prices to produce them cause more than an economic problem. This is causing economic fluctuations and no one is doing anything to stop it. High unemployment, low growth and high inflation are just some of the problems this constant increase is causing. In my questionnaire I asked Pick n Pay workers if... middle of paper... ss about the increase. Pick n Pay is trying to adapt to these changes and Mr Ackerman says they have now had to retrain staff and bring in new people. They've set themselves a huge task, but Gareth Ackerman says it's possible. Although Evan Walker expects a price war between retailers in the coming years, he says they will overcome it easily. Pick n Pay is struggling to get back on track but according to my questionnaires, Pick n Pay has not let its customers down and most people prefer to shop at Pick n Pay. They will get back on their feet and all of us loyal customers will see them overcome. Shevel concludes by concluding that as long as we (Pick n Pay buyers) stand by them, they will continue to do their best to meet our consumer needs and provide the best products possible.