Econ 545 Project 1 Microeconomic Analysis - Cousin Edgar plans to invest in buying two gas stations.

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...