Math in Economics/Quantitative Reasoning for Business
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. https://www.virginiagasprices.com/GasPriceSearch.aspx (zipcode 23435).
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Citgo
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$ 2.12
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Kroger
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$ 2.19
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Exxon
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$ 2.19
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Shell
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$ 2.19
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7-Eleven
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$ 2.19
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Sam's Club
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$ 2.06
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Wawa
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$ 2.08
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BJ
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$ 2.11
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Happy Shopper
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$ 2.15
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Citgo
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$ 2.15
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I need the supply and demand curve for gasoline.
- https://www.eia.gov/dnav/pet/pet_cons_wpsup_k_w.htm
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.
Request instructor assistance if you have questions concerning supply and demand curves and elasticities.
Individual Assignment: Math in Economics
Purpose of Assignment
The assignment explores some of the foundation skills needed for more economic driven courses. Students will take a general business scenario and use the basics of supply and demand to make business decisions. An in-depth knowledge of Economics is not needed to perform these graphs and this aid in understanding the connection between math and other areas.
Resources
Website: https://www.fueleconomy.gov/feg/gasprices/states