Nancy hears a report that the current national average price of gasoline is $3.14. She averages the prices of stations near her home. she finds the average price of gas to be $2.95. Why are the averages different?

Nancy's ambient locality might be having more suppliers, higher supply of Gasoline

Step-by-step explanation:

National average price of gasoline = $3.14

Stations near Nancy's home have an average price = $2.95

Gasoline price near Nancy's house is lesser than national average price level. Number of gasoline stations near her house might be more. It implies increase in its supply. This leads to competition among sellers & reduces the price level.

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