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Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even further with high demand from India and China. Besides, Cousin Edgar thinks he will make a good profit on the sale of convenience items at each station. But before buying the gas stations, he decides to ask for your advice because you are taking this course in business economics. You happened to read the piece “$4-a-Gallon Gas Fueling Fears for Recovery” on page 196 of the textbook. Being skeptical of Cousin Edgar‟s optimism on the profitability of selling gasoline and convenience items, you decide to research the market in terms of supply and demand, elasticity, costs of production, pricing, and normal or economic profit or loss. You want to provide Cousin Edgar with the most informed advice possible. Situation D After hearing of you taking this course in business economics, Uncle Dan has e-mailed you asking for advice on his 100-acre corn farm. He mentioned how, after 30 years of growing corn, he wishes to leave that commodity‟s market and enter a more profitable market instead. He is thinking of planting some organic crop. But he is not sure which crop would be most profitable. He already knows that going organic requires changing some of his practices to qualify for the certification. Therefore he wants to know how much it costs to become a certified organic farmer, and which crop would be best suited for him to grow given his current equipment. Luckily before you can find time to answer Uncle Dan‟s e-mail, you read the piece on organic farming in the United Kingdom on page 422 of the textbook. Recognizing the costs and risks for Uncle Dan in making the switch, you decide to research the market in terms of supply and demand, elasticity, production costs, pricing, and

Econ 545 all weeks discussion (devry)  

For more course tutorials visit www.econ545.com DEVRY ECON 545 Week 1 DQ 1 Supply and Demand DEVRY ECON 545 Week 1 DQ 2 Elasticity and the...

Econ 545 all weeks discussion (devry)  

For more course tutorials visit www.econ545.com DEVRY ECON 545 Week 1 DQ 1 Supply and Demand DEVRY ECON 545 Week 1 DQ 2 Elasticity and the...

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