Project 1 – Microeconomic Analysis

633 Words Oct 21st, 2014 3 Pages
Project 1 – Microeconomic Analysis
Donald Cole
ECON545 – Business Economics
Date: September 18, 2014

Situation C The situation that I personally thought would correspond with today economy would be situation C. Situation C basically states that Edgar has a business idea of buying two gas stations for profit situations. Edgar is asking for advice on buying these two gas stations before taking action on his business idea. Hopefully, by the end of this documentation, I would give Edgar enough information to decide on what to accomplish on his business idea. My research is going to consist of the demand and supply of gasoline. It’s going to consist of the comparison between the prices in the different countries and possible
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Competition is a big factor when you’re coming up with a choice in choosing the two gas stations and the particular location on them both. Not only the location is the biggest key, but you got to realize the demand and supply factor too. Just so we are clear on the definition of the two terms: demand refers to the quantity of a good that is desire by buyers and supply is the total quantity of a product or service that the marketplace can offer (Economic Basics: Supply and Demand, 2014).
Just to give you more of an idea for you to come to a conclusion. I’ve found a chart for you to compare the prices of gasoline in the United States period for annually.

By the look at the numbers that is given, you can clearly see that the prices are an incline as the years went up. Just make sure that when you’re making your decision, you will take a close look at the numbers and the supply and demand curve that I presented. I hope that this information does you well and you will make the right decision.

References
Crandall, M., & Weber, B. (2005). What is Rural. Retrieved from Oregon Explorer: http://oregonexplorer.info/rural/WhatisRural
Economic Basics: Supply and Demand. (2014). Retrieved from Sophia: http://www.sophia.org/tutorials/economic-basics-supply-and-demand
Energy, U. D. (2014, September 15). Petroleum & Other Liquids. Retrieved from EIA:
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