Problem: Research the gasoline prices in 1956 (average cost in April) to the cost of gasoline in 2005 (average cost in April) in Tennessee and determine:
Q1. What increase is required in disposable income to meet the difference of the cost of gasoline?
Q2. Considering the choice of substitution. What would you advise your leadership to do to offset the cost of gas in your corporation?
Q3. What percentage of decrease in travel, in your view, will take place in the United States?
Q4. Assuming gas prices have increased 65%, a loss of 35% in sales, and the average annual income for a gasoline station is $900,000 what would be the loss of income to 5,000 gasoline stations? Would this loss create a positive or negative impact on the public? Discuss the impact on spending, income and at least two other affects.