GGR252H5 Lecture Notes - Lecture 6: Demand Curve, Cost Curve, Profit Margin
Document Summary
Spatial definition of the market: demand and cost curve, bid rent curve. People will travel certain distances to buy certain goods. Less then 10km for a particular good: levels of accessibility. How long it takes you to get to the spot. More complicated when you introduce shopping to urban downtown. Young and elderly are not that mobile. People will travel to stores based on there experience of the store. Size of the facility, the larger the more attractive: level of attraction. Relationship price and number of units/ items sold. The price of the product will determine the level of demand. Suggest there is always a demand and that demand never reaches zero. Relationship between distance (travel cost), price of unit/item and number sold. It considers the distance, travel cost, and price unit. Travel cost is added to the cost of the unit.
