In this article written by Dr. Econ, we see that he has divided the problems into two sections; micro and macro economics. In microeconomics, he finds that as gasoline prices rise, household budgets must be changed to accommodate this problem, leaving less money to spend on other vital items for the life. This is also the reason 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 as much as Before. 10 out of 12 women said they could no longer afford luxury products for their family as well as themselves. “Rising oil prices tend to make production more expensive for companies” [Econ, 2007]. This point relates to the main objective of this project, if oil prices increase, transportation costs increase, store prices increase and therefore customer spending decreases, which leads to stores making less sales because people can't afford it anymore and this cycle has no effect. a happy ending for the retailer, in this case Pick n Pay. Dr Econ says the increase in oil prices will lead to an increase in 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 the second most answered question was inflation. Increasing oil prices can also affect the supply and demand of goods other than oil, Econ has made it clear that increasing prices to produce them causes more of an economic problem. This causes economic fluctuations and no one does anything to stop them. High unemployment, low growth and high inflation are just some of the problems caused by this constant increase. In my questionnaire, I asked Pick n Pay workers if ...... middle of paper ...... if there was an increase. Pick n Pay is trying to adapt to these changes and Mr Ackerman says they have now had to retrain their staff and introduce new people. They have set themselves a huge task, but Gareth Ackerman says it is possible. Although Evan Walker expects a price war among retailers in the coming years, he says they will get away with it easily. Pick n Pay is struggling to get back on track but according to my questionnaires, Pick n Pay has not disappointed its customers and The majority of people prefer to shop at Pick n Pay. They will get back on their feet and all of us, loyal customers, will support them. Shevel ends by concluding that as long as we (Pick n Pay shoppers) stand by them, they will continue to do our best to meet their expectations. our needs as a consumer and provide the best possible products.