GGR252H5 Lecture Notes - Lecture 3: Central Place Theory, Demand Curve, Normal Good
Document Summary
Lecture 3 trade area delimitation techniques (feb 3) The basic demand curve: few expensive goods, purchase a lot of cheap goods, quantity purchased will decrease with an increase of price. Increase in cost with an increase in distance. Spatial price curve: base price is the price of product at the store, plus whatever distance that needs to be travelled from cost and distance curve. Spatial demand curve: the farther the distance the less the interaction (less purchased, the range and steepness is diff for all products. Milk and eggs have a steep curve (normal goods) Specialized goods (inferior goods) have flatter curves. Schools/education: elementary are high in number low specialized, universities are small in number, more spaced out (need to travel longer distance for them), highly specialized. Medical services: the highly specialized hospital locations are in downtown because it needs to be accessible to much more people.
