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.
Excel is attached with 10 gas station prices in my local area. Standard deviation and the avg. cost of gas is already inputted.
Research supply and demand curves for gasoline.
Add to the spreadsheet in which you do the following:
- Create a supply curve for gasoline.
- Create a demand curve for gasoline.
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.
All references must have a link.