Gasoline, similar to any other commodity in the marketplace, is influenced by the forces of demand and supply. In turn, this impacts the quantity amount of the commodity that is demanded and supplied to the consumers. The following discussion will encompass the gas prices of gasoline per gallon in ten different gas stations. Thereafter, the theory of demand and supply will be utilized to ascertain the change in prices and the new prices to be set in a new market.The following are 10 gas stations in your local area with a record of the price per gallon for each gas station.

Gas Station

Price per Gallon

Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd

Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd

Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.

Signals 11024 Southwestern Blvd near Brant Farnham Rd

Heron's Landing 11186 Southwestern Blvd near Railroad Ave

Native Pride II 11403 Erie Rd & Milestrip Rd

1.95

Rez Smoke Shop 986 Bloomingdale Rd near New Rd

2.05

Mobil 718 11th Ave & W. 51st St.

4.19

CITGO 1320 Hutchinson River Pkwy N. near Balcom Ave

3.79

i. Create a supply curve for gasoline

Gas Station

Price per Gallon

Supply

Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd

1.77

50

Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd

1.82

60

Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.

1.85

70

Signals 11024 Southwestern Blvd near Brant Farnham Rd

1.89

80

Heron's Landing 11186 Southwestern Blvd near Railroad Ave

1.89

80

Native Pride II 11403 Erie Rd & Milestrip Rd

1.95

90

Rez Smoke Shop 986 Bloomingdale Rd near New Rd

2.05

Mobil 718 11th Ave & W. 51st St.

4.19

CITGO 1320 Hutchinson River Pkwy N. near Balcom...

Create a demand curve for gasoline
Gas Station

Price per Gallon

Demand

Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd

1.77

Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd

1.82

Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.

1.85

Signals 11024 Southwestern Blvd near Brant Farnham Rd

1.89

90

Heron's Landing 11186 Southwestern Blvd near Railroad Ave

1.89

90

Native Pride II 11403 Erie Rd & Milestrip Rd

1.95

80

Rez Smoke Shop 986 Bloomingdale Rd near New Rd

2.05

70

Mobil 718 11th Ave & W. 51st St.

4.19

50

CITGO 1320 Hutchinson River Pkwy N. near Balcom Ave

3.79

60

iii. Calculate the average cost of gas in your local area

The average cost of gas in the local area is obtained as follows:

(1.77 + 1.82 + 1.85 + 1.89 + 1.89 + 1.95 + 2.05 + 4.19 + 3.79) / 10

= 21.2 / 10

= $2.12

iv. Calculate the standard deviation

Gas Station

Price per Gallon

Mean difference

Mean Difference squared

Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd

1.77

-19.43

3.1329

Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd

1.82

-19.38

3.3124

Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.

1.85

-19.35

3.4225

Signals 11024 Southwestern Blvd near Brant Farnham Rd

1.89

-19.31

3.5721

Heron's Landing 11186 Southwestern Blvd near Railroad Ave

1.89

-19.31

3.5721

Native Pride II 11403 Erie Rd & Milestrip Rd

1.95

-19.25

3.8025

Rez Smoke Shop 986 Bloomingdale Rd near New Rd

2.05

-19.15

4.2025

Mobil 718 11th Ave & W. 51st St.

4.19

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