The Market And Economic Conditions For Buying And Operating The Two Gas Stations

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Introduction Interested in near future business ideas, Cousin Edgar is considering buying two gasoline (gas) stations. Gasoline is a fuel that, he believes, most American consumers will continue to use for the foreseeable future and anticipates that the gasoline prices will continue moderately stable. The business planning will evaluate the market and economic conditions for buying and operating the two gas stations. The evaluation will be inclusive of Edgars’ expectation of his gas stations’ basic economic conditions such as supply and demand, elasticity, costs of production, pricing, and normal economic profit/loss. Cousin Edgar does believe that the opportunity for a healthy profit on the sale of convenience items at each station could complement the gas stations’ business profits. Determinants of Demand There is a demand for the availability of gas stations that offer not only fuel retailing but also food items for the consumers’ convenience. Edgar is aware that his retail gas station business could offer complementary items to enhance the gas stations’ revenues. Preliminary review of this business idea recognized that the national average of fuel prices has been declining since the end of 2014, http://www.fuelgaugereport.com/. The determinants for gasoline are transportation needs, income, and consumers’ lifestyles. Transportation in most U.S. cities use gasoline-fueled vehicles and few have alternatives in fueling. An income level is another determinant that affects

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