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A Brief Note On Gas And The Gas Station

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Introduction Situation C Gas is something that most Americans cannot live without in today’s society. In the past, when cars were not readily available to all Americans, gas was not that important. Those that had cars needed it and those that did not. Prices on a gallon of gas in the 1920’s and 30’s was .25 cents a gallon. That was a lot of money in those days since many people barely made $1500 a year. Now we spend our days complaining about the $2 average price that we pay now. Gas has become a necessity that we have to have and because of that necessity, my cousin Edgar has contacted me about his possible interest in opening up two gas stations. He believes that because Americans have become so dependent on transportation and the gas…show more content…
If we do not have gas in the car, the vehicle will not go. Without our vehicles, we cannot get around and we cannot get to jobs that earn us money. We have gone to more fuel efficient vehicles because the prices have gone up. Long gone are the days of people purchasing big gas guzzling SUVs and trucks because the prices have gone up and people are trying to save money where possible. If Edgar is planning on opening a gas station, he must understand that the prices will rise and fall which can lead to either profits or losses. He must also understand that because of gas prices, consumers will use more fuel efficient vehicles, which will cause a decrease in demand for fuel. Edgar is planning on also adding convenient items for sale in his store so that he can meet his customers’ needs. The drawback to providing those items is that they must be things that can have a long shelf life in case customers stop their patronage. The following graph from gasbuddy.com shows how gas prices have fluctuated over the past four years. The average gas price for a gallon of unleaded gas is $2.32. This is a good price because it is not so low that the demand is too high and gas is unavailable and it is not too high that there is a surplus of fuel and lower demand. Most vehicles run on regular gas which leads to a higher demand for regular fuel and not so much for other grades. Edgar will have to evaluate the area that he plans to choose to see what kind of vehicles frequent the stations
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