Description
You operate a delivery service in your local area, but you are thinking of expanding to another market. You're concerned that you might need to set different prices in the new market because the cost of gas might be much different.
Identify 10 gas stations in your local area.
Record the price per gallon for each gas station.
Research supply and demand curves for gasoline.
Create an Excel® spreadsheet in which you do the following:
- Create a supply curve for gasoline.
- Create a demand curve for gasoline.
- Calculate the average cost of gas in your local area.
- Calculate the standard deviation.
Determine whether the prices in your local area are higher or lower than the national average.
Create a 700-word proposal in which you include the following:
- Explain elasticity of supply and demand and how this relates to your pricing decision.
- Determine if your prices will be higher, lower, or the same for the new location.
- Defend the pricing decision including all supporting documentation.
Cite a minimum of two scholarly references not including your text.
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Explanation & Answer
Here is the answer. Thanks.
Gas Station
ANL Filling Station
LMO Filling Station
PSL GAS Station
STD GAS Station
ANZ Filling Station
Zampa Filling Station
Park Road Filling Station
Link Road Filling Station
Fleet Street Gas Station
Auto Gas Station
Price of
Gasoline ($ Per
Gallon)
2.245
2.454
2.683
2.653
2.532
2.322
2.356
2.385
2.356
2.435
ANL Filling Station
Zampa Filling Station
Park Road Filling Station
Fleet Street Gas Station
Link Road Filling Station
Auto Gas Station
LMO Filling Station
ANZ Filling Station
STD GAS Station
PSL GAS Station
Price of Gasoline ($
Per Gallon)
2.245
2.322
2.356
2.356
2.385
2.435
2.454
2.532
2.653
2.683
Quantity Supply of Gasoline
(Gallons Per Day)
100000
105000
107000
110000
113000
115000
125000
130000
143000
148500
2.75
2.7
2.65
2.6
2.55
Price
Gas Station
2.5
2.45
2.4
2.35
2.3
2.25
2.2
90000
Supply Curve of Gasoline
90000
108000
126000
Quantity Supplied
144000
ANL Filling Station
Zampa Filling Station
Park Road Filling Station
Fleet Street Gas Station
Link Road Filling Station
Auto Gas Station
LMO Filling Station
ANZ Filling Station
STD GAS Station
PSL GAS Station
Price of Gasoline ($ Quantity Demand of Gasoline
Per Gallon)
(Gallons Per Day)
2.245
143500
2.322
135000
2.356
128000
2.356
120000
2.385
115000
2.435
111000
2.454
105000
2.532
99000
2.653
95000
2.683
90000
2.75
2.7
2.65
2.6
2.55
Price
Gas Station
2.5
2.45
2.4
2.35
2.3
2.25
2....