Focusing on Supply This paper is focused on a demonstration of the principles of economics using an article from a recent newspaper that covers the issues of supply and demand. The events explored in the article will be used as examples in order to provide the basis for the theoretical and practical explanations. The article chosen for this work explores the issues faced by the fast-casual restaurant chain Chipotle and several factors that significantly affected Chipotle’s income and reputation. The article, “What Do Rising Avocado Costs Mean for Your Next Chipotle Order?” by Sabrina Rojas Weiss, was published on the news portal Refinery 29 on July 31, 2016. As the title makes clear, the author of the article explores the effect on the profit of Chipotle restaurants produced by a change in the price of avocados. The price for avocados that are mainly imported from Mexico is one of the supply shifters known as the resource price ( 6 Supply Shifter Factors , n.d.). In the article, Weiss (2016) reported that the surge in avocado crop production typical for July had not occurred and that was why the supply of this product had turned out to be poorer than anticipated. In turn, the price for avocados grew by 46% (1.25 dollars per piece). Accordingly, the change in the quantity of the supplied avocados, as well as their price, affected the prices of the end products at Chipotle. Even though the increase in the price for the Mexican avocados seems minor to the average consumer, this small change has been very significant to the large chain of fast-casual restaurants that is Chipotle. In fact, the restaurants sell quite a lot of guacamole and other foods that include avocados as one of the key ingredients; in practical terms, as reported by Weiss (2016), the chain goes through as many as 97,000 avocados on a daily basis. This enormous quantity of fruit makes the increase in price very costly for the restaurant chain. As a result, the prices for Chipotle products inevitably were increased so that the chain would be able to cover the cost of the pricy Mexican avocados. The change that the unstable production of crops in July created is shown in Figure 1 below. The graph demonstrates the effect due to the decrease in the quantity of the imported avocados (horizontal axis reflects quantity); the price of the fruits sold to Chipotle went up (vertical axis reflects price). As a result, the supply curve (S1) shifted to the left turning into S2, which indicates the decrease in supply. Figure 1 Focusing on Demand In addition, in her article for Refinery 29 , Weiss mentions another factor that significantly affected the demand for the foods sold by Chipotle. To be more precise, not so long ago, the chain found itself in the middle of a very unpleasant and image-breaking scandal. In particular, according to a report made by Kyle Stock (2016) on Bloomberg , the end of the fiscal year of 2015 is now recognized as the most challenging period in all the history of Chipotle. Namely, the sales of the chain were documented as having declined by almost 7%, which represents 14.6 fewer burritos sold per hour; the decrease in sales overall equals a decline of 17% over the entire year of 2