http://www.suntimes.com/business/930743,CST-NWS-saving04.article
Summary: This article is about how food, gas costs force lifestyle changes for many people. In the article, Mark Davis, a 44 year-old policeman used to head out for restaurants two or three times a week. Now, he only goes there once a weeks. Why this change? It is due to the fact that he has 4 children, and one of them is only few months old. Moreover, the prices of foods and gas is going up a lot. Moreover, the price of gasolin has raised to $4 dollars a gallon in Chicago. This forced Davis to be a lot careful with regards to where he is driving. On the other hand, his family's vacation plans have also changed. Why? In the past, he would go on a vacation without his children around, but this year he planned to go for 1 family vacation trip instead. This time they will be going to somewhere near their hometown, and not fly to other countries like before.
Connection: This article talks about how the rising prices of foods and gasoline have made such a big impact on people's lifestyle. We have talked about something new in our chapter -freight in costs, which is when seller pays a fee for transportation of goods. ( By raising the price of gas, businesses will experience a higher freight in cost when recieving delivery like foods. Thus causing food prices increasing so that businesses will be able to maintain their profit and maintain the amount of inventory. This leads to the fact of losing costumers and so there will be a decrease in their profits and net income (increase in expense and decrease in revenue).
Reflection: I do see the price of gasoline and foods also rising a lot. Especially with the gasoline, when i got off work at night. i would see cars in a crazy line up heading for gasoline when its 116.9cents per liter. I remember about ten years ago, 60 cents was considered to be expensive. As we can see, gasoline's price is skyrocketing. In this case, businesses have chosen to lay the burden on customers instead. On the other hand, I do think this has a great impact on our lives because we will be prefering to use public transport instead, due to the fact that it costs quite a lot for driving a car. Moreover, I used to go out for lunch every friday with my friends, however, after the price of the foods in restaurant has risen, we stopped going. So then, i think these two factors affect many business especially food industry. They probably have lost many customers due to this rise in price.
1 comment:
I agree with you on the fact that when gasoline price rises, it will lead to a higher freight in cost for the transportation of goods such as food. The increase in gasoline pricing is like a domino effect and this affects every aspect of our daily life. The rising price of gasoline can be beneficial to us since it will make us think of another way for transportation. We can be environmentally friend and not use gasoline as the energy source for a car but instead maybe using water or electricity.
-Joanna W. Bl:B
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