Article Analysis of Food Consumption

ECO/365

Food consumption and the prices of consumptions have affected the American population in many ways. Prices have changed and accounted toward the increased prices in food consumption for the American population. Many factors have affected the price increases and types of food that are consumed. Simplicity and availability have also played a huge role in the elasticity of food consumption.
The utility derived from food consumption is the preference and satisfaction of the food itself, means of obtaining the food as well as the cost of food. In the case of food consumption, restaurants have grown in significant numbers. One example of this is McDonalds, starting in 1940 with only one restaurant where as today there are more than 31,000 restaurants, serving more than 68,000 people every day (About McDonalds, 2012). In over 60 years the consumption in just this one example has surpassed expectations with leaps and bounds and has lead to the cost of consumption along with supply and demand. More people equal more consumption in all things food. Food consumption is a necessity and with today’s busy lifestyle food sources have become readily available.
The market for food has increased as has the desire to make food consumption easier. Simplicity has taken over the busy lives of Americans and the food industry has run with this concept. In grocery stores simplicity is everywhere, from individualized servings to family size portions. Also many items have been converted to travel size to keep the fast moving world mobile. The supply is still there however the demand has changed therefore the food industry has adjusted their market to fit the wants and needs of people across America.

While the food industry has adjusted to fit the growing needs and wants of the people it also changed the prices. In April 2000 the USDA issued an estimate of food consumption cost for a family of four to be approximately $836.30 per month. While in the current year the USDA issued an estimate the food consumption for a family of four to approximately cost $1244.30 per month. That is an increase of over $400 dollars per month in just 12 years. The food industry has adjusted prices to fit the supply and the demand of food consumption and this has shown over the last 12 years. Changes in the prices have been affected by advertisements marketing fast food outlets and the rush to buy without considering the long term effects of consuming fast foods (USDA. 2000), (USDA. 2012).
Some factors affecting the supply would include the amount of suppliers in the market. The more the suppliers the more products available while a decrease in suppliers will result in a decrease of supplies. Weather will also contribute to the prices and availability of some foods. Seasonal foods become plentiful during the season they are grown. Seasonal fruits and vegetables are also affected when agricultural produce is limited because of weather. Suppliers also have the choice to withhold supplies until prices improve (Jane. 2012).
Job loss has also played a huge role in the consumption of food. More people are unemployed then there were just 10 years ago. Therefore the amount of foods purchased may have decreased in the types of the food that are purchased. This has increased the types of unhealthy foods that are purchased and is a leading cause in obesity. Many people have also turned to the convenience of quick foods instead of healthy foods because fast is cheaper and easier (Jane. 2012), (Roeder. 2012).
Food consumption is inelastic in the end. People have to eat therefore increasing prices will not keep Americans from purchasing food and consuming foods. People need to eat to live, therefore the quantity of food may decrease for health reasons the food is still purchased and still consumed. Even if prices continue to rise on food consumption for a family of four, people will still purchase food. Cheaper, less healthy foods are replacing the fresh, healthy choices simply due to the increasing costs of foods. Cheaper unhealthy foods play a negative role in the health of Americans. Altering the environment where Americans spend their time so that it is easier to make healthy diet choices would help in decreasing American obesity issues today (Roeder, 2012).
The USDA reports from 2000 and 2012 proved that the elasticity of the price in food consumption has increased over the last 12 years. This can be linked to either more food that is consumed or to the increasing prices of foods. According to the economy prices from 1999 the average cost of a gallon of milk was $2.72. Today the average cost of milk is $3.38 per gallon. That is an increase of over .50 cents per gallon. This proves that not only has consumption changed over the last 12 years but so has the prices of supplies (1990’s Flashback, n.d.).
Fast paced lifestyles, job loss, increased prices in healthy foods have all contributed to the increasing cost in food consumption. Simplicity and convenience has influenced the types of foods that are commonly sought after which has overall affected the cost of those high demand foods. Increasing prices proved that elasticity of the prices in food consumptions can be linked to the types of food and the increasing prices of foods.

Reference

Jane. (August 12, 2012). The Price Elasticity of Demand for Food Negatively Impacts Health. Retrieved on September 3, 2012 from http://healthpopuli.com/2011/08/12/the-price-elasticity-of-demand-for-food-negatively-impacts-health/
McDonalds History. (2012). Travel Through History. Retrieved on September 4, 2012 from http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_history_timeline.html
Roeder, A. (September 4, 2012). Lowered “Time-Priced” of Food to Blame for Rising Obesity. Retrieved on September 2, 2012 from http://www.hsph.harvard.edu/news/features/features/obesity-prevention-gortmaker-hot-topics.html
USDA. (April 2000). Center for Nutrition. Retrieved on September 2, 2012 from http://healthpopuli.com/2011/08/12/the-price-elasticity-of-demand-for-food-negatively-impacts-health/
USDA. (February, 2012). Center for Nutrition. Retrieved on September 4, 2012 from http://www.cnpp.usda.gov/Publications/FoodPlans/2012/CostofFoodJan2012.pdf