Economic Paper Gasoline The New Market Opportunities - 275 Words

Economic Paper: Gasoline The New Market Opportunities (Essay Sample) Content: Gasoline The New Market OpportunitiesStudents Name:Institution:The ProposalThe sales of gasoline in the United States sells market is growing rapidly, and this is due to the constant factor of the seasonal unpredictability and the demand which clearly demonstrates the reason for the increase in the trend of sales gasoline. Similarly, there exist very essential demographic factors and cultural dynamics which enable to establish a fair price in the precise marketing of the gasoline in the United States (Muoz and Newman 2010). In Florida, the average price per gallon is 2.25 which sells at a lower price than other states and provinces, e.g., California(2.880), Hawaii (2.570) and many others.Florida has a lower demand for gasoline compared to other states and provinces in the United States thus there is much effort needed to increase the market area in Florida so that a maximum profit can be earned in the state. For instance, in California, the price of Gasoline is b eyond $2.880 meaning if this company establishes a business in the state it will earn a greater profit compared to the State of Florida.The current trend of demand and supply of the Gasoline in the state Florida confirms the subsequent pattern. The demand curve is essential since it demonstrates the entire change in the demand for the product with the change in the price of gasoline. This is the supreme essential theory concerning economics, which clearly states that when a price falls the demand for a product rises and when the price increases demand falls (Miller, 2012). This inverse connection between demand and price is defined as the Law of Demand which applies worldwide (Cunningham, 2008). The price determination in a market is fixed according to the strength of demand and supply. Supply has the direct relationship with the price. This apparently means that if the price of a product rises than the supply increase, the price falls and the supply decreases. Therefore, supply usually displays the preferences of the manufacturer or generating a unit While the demand is certain to the consumer. Hence, there ought to be balance between the demand and the supply so that the price can be governed in a worthy manner where both consumer and producer equally benefit.In this case of Gasoline, the forces of the demand are attempting to decrease the price entirely and frequently respond rapidily causing the reduction in the price. A good example for this is the situation is when the price of gasoline had increased the people who fully use their vehicle tank before the price was increased shows the love to purchase more at lower prices as this will definelty enable to give more efficiency per unit of consumption(Cunningham, 2008). Hence, the price will be established slightly lower to increase the demand and creating profitability in the long run.The current new market is essential to establish various demographic and even cultural practices to ena ble to achieve a comprehensive idea concerning the people consumption of Gasoline. Moreover, there consist many locations in the US, for instance, Oklahoma, Virginia, and Oregon which have a higher price as compared to the state of Florida. Therefore, it would be better if the company begins to take these lifetime opportunities and ven...