Econ 1005 Reflection Assignment #1b (D&S): Current Affairs Analysis

This assignment is a reflection on the economic theory of demand and supply, connecting it to a current affairs news article about rising grocery prices in Canada. The student analyzes the article, identifying evidence of the demand and supply model, specifically how changes in consumer choices, weather, and retail atmosphere affect food prices. The reflection highlights the relationship between supply, demand, and price, illustrating how these economic principles operate in the real world. The student gained a better understanding of the factors influencing demand and supply and how the economy functions based on the principles learned in their studies. The assignment demonstrates an understanding of the impact of price on demand, using the example of increased vegetable prices and its effect on consumer choices. The student cites the news article and relevant academic sources to support their analysis.

Running head: REFLECTION 0
MACROeconomics
FEBRUARY 11, 2019
STUDENT DETAILS:

REFLECTION 1
Article- Your grocery bill could rise 3.5% in 2019, study predicts
1. In economics, the demand and supply model reflects relationship between quantity of
produces that producers wish to sell at different quantities and prices, which customer
wants to buy. The supply and demand is basic model to govern price used in cost-
effective model. The price of produces is defined by connection of supply and
demand. This article states that food’s price can rise by 3.5 per cent. However, the
prices of seafood and meat are expected to become cheap. Recently, seafood and meat
have been increased, but the shifting from meat to vegetables and food is decreasing
demand (CBC News, 2018).
Sources taken from: Encyclopædia Britannica, Inc.
2. With the help of this article, I got proper understanding about demand and supply
model. This article states that changes in retail atmosphere, changes in weather, and
changes in customer’s choices are different factors to affect the price and demand of
food. In this way, I came to know about factors influencing demand and supply. I
realized that the quantity of commodities demanded depends on price of that

REFLECTION 2
commodity and possibly on different factors such as income, price of other
commodities, choices of consumers, and periodic influence (Zhu, et. al, 2018).
3. After reading this article, I realized that in real world, economy works as same as I
have read the principles and model of economics in my studies. I can see an example
in this article. The article states that price is an important factor to affect demand and
supply. In Canada, increase in vegetables will be reason to eat few vegetables. The
vegetables have recognised as the luxury items with that rise up to 6%.
Increase in demand
Illustration of increase in equilibrium price (p) and equilibrium quantity (q) due
to shift in demand (D)
Sources taken from: Encyclopædia Britannica, Inc.

REFLECTION 3
References
CBC News (2018). Your grocery bill could rise 3.5% in 2019, study predicts. Retrieved from:
<https://www.cbc.ca/news/business/canada-food-price-report-2019-1.4930130>
Zhu, S., Song, J., Hazen, B. T., Lee, K., & Cegielski, C. (2018). How supply chain analytics
enables operational supply chain transparency: An organizational information
processing theory perspective. International Journal of Physical Distribution &
Logistics Management, 48(1), 47-68.