Question

Select a brand name product like an individual size Hershey Chocolate bar, a gallon of regular gasoline from a specific brand gas station or any other product that is sold in multiple locations. Then select three different organizations that provide your selected product like a standard gas station. What are the differences between the prices among the different organizations? What is the rationale for this difference?

Answer 1

Price of gasoline in standard gas station located at multiple states:

Alabama: $2.389 per gallon

South Carolina: $2.409 per gallon

Arkansas: $2.439 per gallon

Gasoline prices depends on highway and interstate access and real estate prices. As the stations located closer to interstates need to more for land, so prices are generally higher. In some areas, stations charge more due to higher. Gas prices is lower in Alabama as per above figure because it lies closer to the large refineries on the Gulf Coast leading to lower transportation costs.