The Case of Gas

Markets - Monopoly

Introduction

Who sets the price of gas? Over the last few years, car drivers have seen gas prices drop to 80 cents per litre during the early months of the COVID-19 pandemic - remember that? - to more than 2 dollars. It's an important part of everyday life because everything we do is dependent on transportation, whether its taking the bus to work, or driving to see family, or getting goods delivered to our cities.

Globe and Mail - World Gas Prices vs Canada

https://www.theglobeandmail.com/canada/video-think-youre-paying-a-lot-for-gas-in-canada-wait-till-you-see-the-rest/

Investopedia - World Oil Prices

https://www.investopedia.com/articles/economics/08/determining-oil-prices.asp

Description 

Analyze the gas price situation in your community.

First, use the Gas Buddy website to find the cheapest and most expensive gas stations in your town or neighborhood.

https://www.gasbuddy.com/home

Second, get a historical view using data from Statistics Canada. This data is available for larger cities in Canada only.  Download gas prices for a city near you, since the year 2000, using the link below (Statistics Canada).

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000101

- click on 'Add-Remove Data'
- under Geography, select your city
- under Type of Fuel, select 'Regular unleaded gasoline at self service filling stations'
- under Reference Period, select 'January 2000, to most recent month'

Make a graph using Excel.

- you can copy and paste the data in Excel
OR
- click on 'Download Options', and select the first CSV button. In Excel, you will select the data and then use the Convert tool, in the Data section. Check the box for commas as separation.
- select the data, click on Insert Graph, choose 2D Line Graph

Analyze the graph by trying to explain changes in the price of gasoline in your community.

- Are there historical events that can explain certain changes?
- Are there seasons when gas is more or less expensive?
- Are you close to a refinery, or oil resources?
- Are there many retailers in your community, or is it more of an oligopoly?
- Are there many retailers facing off on the same road intersections?
- Are there neighbourhoods in your town where gas is cheaper, more expensive?
- How many gas companies are there in Canada?

 

Evaluation Criteria 

Your solution will be graded using the following expectations.

• The answers are explained concisely
• The answers cover the issues of fmonopoly, dsafsdaoligopoly.
  
• The answers cover the issues of production fdsafand dsatransportation costs.
  
• The answers cover the issues of fdslocal af dsadistribution.
  

Guidelines

Your solution should be written up as a 500150 word text, using at least three short paragraphs to cover the three sets of issues.

TheYour textsolution should beinclude focusseda ongraph qfof dsafdsathe price of gas in your town/city since 2000.

Deliverables

Submit a 500150 word solution and graph in a WORD document on the Innovatank Case Platform.