Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Gasoline, similar to any other commodity in the marketplace, is influenced by the forces of demand and supply. In turn, this impacts the quantity amount of the commodity that is demanded and supplied to the consumers. The following discussion will encompass the gas prices of gasoline per gallon in ten different gas stations. Thereafter, the theory of demand and supply will be utilized to ascertain the change in prices and the new prices to be set in a new market.The following are 10 gas stations in your local area with a record of the price per gallon for each gas station.
Gas Station
Price per Gallon
Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd
Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd
Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.
Signals 11024 Southwestern Blvd near Brant Farnham Rd
Heron's Landing 11186 Southwestern Blvd near Railroad Ave
Native Pride II 11403 Erie Rd & Milestrip Rd
1.95
Rez Smoke Shop 986 Bloomingdale Rd near New Rd
2.05
Mobil 718 11th Ave & W. 51st St.
4.19
CITGO 1320 Hutchinson River Pkwy N. near Balcom Ave
3.79
i. Create a supply curve for gasoline
Gas Station
Price per Gallon
Supply
Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd
1.77
50
Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd
1.82
60
Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.
1.85
70
Signals 11024 Southwestern Blvd near Brant Farnham Rd
1.89
80
Heron's Landing 11186 Southwestern Blvd near Railroad Ave
1.89
80
Native Pride II 11403 Erie Rd & Milestrip Rd
1.95
90
Rez Smoke Shop 986 Bloomingdale Rd near New Rd
2.05
Mobil 718 11th Ave & W. 51st St.
4.19
CITGO 1320 Hutchinson River Pkwy N. near Balcom...
Create a demand curve for gasoline
Gas Station
Price per Gallon
Demand
Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd
1.77
Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd
1.82
Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.
1.85
Signals 11024 Southwestern Blvd near Brant Farnham Rd
1.89
90
Heron's Landing 11186 Southwestern Blvd near Railroad Ave
1.89
90
Native Pride II 11403 Erie Rd & Milestrip Rd
1.95
80
Rez Smoke Shop 986 Bloomingdale Rd near New Rd
2.05
70
Mobil 718 11th Ave & W. 51st St.
4.19
50
CITGO 1320 Hutchinson River Pkwy N. near Balcom Ave
3.79
60
iii. Calculate the average cost of gas in your local area
The average cost of gas in the local area is obtained as follows:
(1.77 + 1.82 + 1.85 + 1.89 + 1.89 + 1.95 + 2.05 + 4.19 + 3.79) / 10
= 21.2 / 10
= $2.12
iv. Calculate the standard deviation
Gas Station
Price per Gallon
Mean difference
Mean Difference squared
Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd
1.77
-19.43
3.1329
Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd
1.82
-19.38
3.3124
Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.
1.85
-19.35
3.4225
Signals 11024 Southwestern Blvd near Brant Farnham Rd
1.89
-19.31
3.5721
Heron's Landing 11186 Southwestern Blvd near Railroad Ave
1.89
-19.31
3.5721
Native Pride II 11403 Erie Rd & Milestrip Rd
1.95
-19.25
3.8025
Rez Smoke Shop 986 Bloomingdale Rd near New Rd
2.05
-19.15
4.2025
Mobil 718 11th Ave & W. 51st St.
4.19
…
Supply/Demand The product being studied is the Prius, the hybrid car from Toyota. The automobile industry is one the largest industries in the world. The major players are Ford, General Motors, Chrysler, Honda, Mitsubishi, Hyundai, several European companies and regional players as well (Investopedia, 2011). These firms all contribute to intense competition among rivals, especially given the size of the industry. The result is an industry characterized by competition both along
Supply Demand Simulation Macro and Microeconomic Principles From the simulation, the two major microeconomic principles are supply and demand. The simulation majorly focuses on the supply and demand of rental properties in Atlantis. In addition, the influences on supply and demand form the major topic discussed in the simulation. The macroeconomic factors clearly stated in the simulation are changes in the population trend, choosing to rent or buy apartments and factors that
Price elasticity for this product was likely quite great, before the item was subsidized, as few consumers perceived it as a necessity. Only the costs of production limited the price elasticity, as the tanks are presumably not cheap to build. Of course, the government might protest that the product is a necessity, given the dire need for conservation, if Australia is to continue to have a sustainable source of
This means that the demand increase will produce an increase in supply at a controlled rate. d. How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace? The simulation sheds particular light on the idea of adjusting pricing structure according to apparent market demand. This is useful to any workplace. In my case, the notion that large-scale external changes in the
Natural Gas Supply, Demand and Pricing Over the past 15 years there has been a significant transformation both in natural gas supply and natural gas consumption. Wellhead price deregulation has permitted natural gas prices to adjust freely to prevailing supply and demand conditions, and open-access transportation has allowed natural gas volumes to move freely from producers to consumers. As a result of industry restructuring, natural gas supply, demand, and prices are
Furthermore, it appeared that the consumption of alcoholic beverages among the youth increased throughout the three-year duration of the survey. In terms of the young females (in high school), the drinking path has been described as "an absolute disaster" (Fyfe, 2010). The primary explanation as to why alcopops became even more popular among the youth is given by the inability of the tax to impact the parents -- who in