Econ

Investing In Local Gas Stations

LaToya James

Project Paper 1 Outline

Business Economics ECON 545

Dr. William Mapp

March 12, 2017

Introduction

This paper will discuss Situation C. I will explore various options for my father, Martin, who is originally from Jamaica, with investing in two local gas stations. It is my goal to acquire as much information and analyze every angle in order to provide my father with advice on making the best decisions. Moreover, there is a lot of information for my father to digest since the economy in Jamaica as well as the currency exchange is dramatically different than that in the USA. He assumes that the increasing price of gasoline is a result of demand from China and India and essentially, it will not affect American consumers. My father assumes that Americans have settled and accepted the rising gas prices in spite of the current state of the economy. Additionally, he believes he will capitalize on and make a significant profit on the convenience goods he plans to sell in the store of the gas station.

Relevant Economic Principles

Throughout this section, the topics of profits of gas sales and convenience items will be discussed. Supply and demand as it pertains to the relation of gas process, elasticity, and cost of productions will also be outlined in this paper. My father will be supplied with data that will assist him with making the best decision and maximizing his potential investment.

Recommendations and Economic Justification

In this section, recommendations will be presented to my father in regards to the best option to take in order to ensue with his business endeavor. The presented information will be based on research and data as a continuation of the previous section of this paper. Since this decision has the capacity to affect him and other potential investors, I will assist my father with understanding the importance of his decision to invest in the local gas stations.

References

NACS - The Association for Convenience & Fuel Retailing: http://www.nacsonline.com/Pages/default.aspx

National Renewable Energy Laboratory: http://www.nrel.gov/