Well done, and right on point with your examples and analysis, Meghan. How are prices generally determined at your local grocery market? Are prices based on the competition, or on supply and demand only or by some other economic factor? Is there a direct correlation between prices and changes in supply and/or demand? Can you help me respond to my professor this is what our grocercy store does. Our grocery store usually uses a base markup on all products usually around 30% but some items are less markup to be competitive with competition