Math in Economics/Quantitative Reasoning for Business

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. 

Identify 10 gas stations in your local area.  http://www.virginiagasprices.com/GasPriceSearch.aspx (zipcode 23435).

I need the supply and demand curve for gasoline.

§  http://www.eia.gov/dnav/pet/pet_cons_wpsup_k_w.htm

Record the price per gallon for each gas station.

Research supply and demand curves for gasoline.

Create an Excel® spreadsheet in which you do the following:

·         Create a supply curve for gasoline.

·         Create a demand curve for gasoline.

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

·         Calculate the standard deviation.

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.

Click the Assignment Files tab to submit both your spreadsheet and proposal.

Request instructor assistance if you have questions concerning supply and demand curves and elasticities.

Individual Assignment: Math in Economics

Purpose of Assignment

The Week 4 assignment explores some of the foundation skills needed for more economic driven courses.  Students will take a general business scenario and use the basics of supply and demand to make business decisions. An in-depth knowledge of Economics is not needed to perform these graphs and this aid in understanding the connection between math and other areas.

Resources

Website: https://www.fueleconomy.gov/feg/gasprices/states

Grading Guide

Content

Met

Partially Met

Not Met

Comments:

The student correctly created a supply curve for gasoline.

The student correctly created a demand curve for gasoline.

The student correctly calculated the average cost of gas in their local area.

The student correctly calculated the standard deviation.

The Excel® spreadsheet includes all relevant calculations.

The student explained elasticity of supply and demand and how this relates to their pricing decision.

The student determined if the prices are higher, lower, or the same as those in the current location.

The student defended the pricing decision including all relevant supporting documentation.

The paper is 700 words in length.

Total Available

Total Earned

X

X/X

Writing Guidelines

Met

Partially Met

Not Met

Comments:

The paper — including tables and graphs, headings, a title page, and a reference page — is consistent with APA formatting guidelines and meets course-level requirements.

The paper includes properly cited intellectual property using APA style in-text citations and a reference page.

The paper includes paragraph and sentence transitions that are logical and maintain flow throughout the paper.

The paper includes sentences that are complete, clear, and concise.

The paper follows proper rules of grammar and usage including spelling and punctuation.

Total Available

Total Earned

X

X/X

Assignment Total

#

X

X/X

Additional comments:

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