Econ 101 term: elasticity. In this context, it refers to how much sales of a given product go up or down as a result of price changes. Inflation rates have hit a year-overyear rate of 7.5 percent, according to the Bureau of Labor Statistics. This is a 40-year high. How have substantial price rises affected demand over the past year? Proud tube 1 . serving you . [Thai - coast 0 .y o to v. C0351: ' .2. Flavor distributor According to a recent story in Forbes, so far, comparatively little overall. The article quotes Kevin Grundy, an analyst at Jefferies Group who covers consumer-product companies: \"Demand elasticity has been surprisingly low. It's kind of so far, so good.\" That isn't true in the produce world, where recent statistics show definite signs of elasticity. The January 2022 report from IRI, by Anne- _ Richard Smoley Produce Blueprints Marie Roerink, indicates that produce prices overall have risen 9.1 percent overthe previous January (again, the highest increase in 40 years). Fresh fruit prices increased 139 percent year over year. \"Comparing January fruit pound to dollar sales growth very clearly shows the impact of inflation,\" says the report. \"While January fruit dollars gained 10.1% over January 2021 levels, pounds were down 3.3%." Fresh vegetables didn't fare as well. Sales in dollar terms declined by 0.5 percent, while volume sales fell by 5.2 percent. Growth over comparable period 2019 2020 Q1 21 Q2 21 Q3 '21 Q4 '21 Jan '22 VS YA Vs 2YA Fruit Dollars -0.2% +8.7% +5.1% +4.5% +6.2% +10.9% $3.3B +10.1% +20.0% Volume 0.6% +8.8% -0.5% -5.1% -0.6% -1.1% 1.88 -3.3% +1.5% Vegetables Dollars +3.9% +14.8% +4.7% -7.1% -2.3% +0.1% $3.5B -0.5% +12.2% Volume +1.7% +14.2% +13.5% -11.7% -5.1% -5.7% 1.98 -5.2% +5.3% Source: IRI Integrated Fresh, Total U.S., MULO The item currently in the spotlight is avocados. "While January 2022 avocado dollar sales were up 13.3%, pound sales were down 12.4%, which would translate into inflation of about 26% on a per pound basis," says the report. Of course we have no way of knowing at this point how the U.S. moratorium on Mexican avocado purchases will shape this picture. Packaged salad was hard-hit, both in dollars and pounds. Dollar sales were down 1.9 percent over the previous January, with pound sales down 10.9 percent. On the whole, however, "January 2022 sales still tracked ahead of January 2020, which was not yet affected by the pandemic purchase patterns," notes the report. Here volume growth for vegetables, at 5.3 percent, outpaced that for fruit, at 1.5 percent. Share of meals prepared at home has remained relatively constant since the beginning of the pandemic: January 2022 was 82 percent, versus 88 percent in April 2020. This gives a brighter outlook for retail than for foodservice.The fresh sector accounted for T83 percent of produce sales in January 2022 vis-a-vis frozen and canned, which is more less stable: 2019's rate was 80.8 percent. In broad economic terms, Americans are sitting on a considerable amount of cash, with a savings rate of 12 percent in 2021, up from 7.6 percent in 2010, according to Forbes. Nevertheless, inflation has wiped out wage increases for many. Consumer confidenceaka sentimentis at a 10-year low, reports Reuters. \"The inflationary levels in retail have two-thirds of shoppers looking for one or more money saving measures. Inflation will likely continue to drive dollar gains for most categories in the foreseeable future but is pressuring unit and volume sales,\" sums up the IRI report. All of this takes place against the background of low fruit and vegetable consumption among the American populace. It's hard to believe that the produce industry is failing the public in terms of quality and variety, which are far higher than they have ever been. I think we need to look in another direction to explain the disconnection between produce and the American public. A subject for another column. Tagged consumption, inflation Richard Smoley, contributing editor for Blue Book Services, Inc., has more than 40 years of experience in magazine writing and editing, and is the former managing editor of California Farmer magazine. A graduate of Harvard and Oxford universities, he has published 12 books. 9 Getting Started The Economic Concepts and Questions discussion forum is repeated in each workshop to provide you a venue for questions, insights, and examples to enhance everyone's mastery of the subject. Instructions 1. Review the rubric to make sure you understand the criteria for earning your grade. 2. Navigate to the threaded discussion and respond to the following: a. Currently, there is considerable concern about inflation in the economy. The following short article specifically addresses the rising prices of produce in the US and how consumers are responding, in a price elasticity sense, to said increases: Produce prices prove to be elastic. Review the article and then comment on the Discussion board about the economic principle at work. b. Make observations regarding who might be affected most notably by the price increases. 3. Your initial post is due by the end of the fourth day of the workshop. 4. Read and respond to at least two of your classmates' postings, as well as all follow-up instructor questions directed to you, by the end of the workshop. 5. Your postings should also: a. Be well developed by providing clear answers with evidence of critical thinking. b. Add greater depth to the discussion by introducing new ideas. c. Provide clarification to classmates' questions and provide insight into the discussion. cl. Be posted on three different days during the workshop