AR 443A - Central Place Theory NOTES PDF
AR 443A - Central Place Theory NOTES PDF
AR 443A - Central Place Theory NOTES PDF
o The lower the order of a good/service, the lesser the distance willing to be travelled by a
consumer.
o The higher the order of a good/service, the greater the distance the consumer is willing to
travel.
o Thus, lower order goods/ services are found in every central place, whether large or small.
o Higher order goods/services are found only in the higher order central places to which the
customers are willing to travel greater distances.
4. Threshold: The minimum level of sales or profit for an economic activity to exist.
o Threshold size varies directly with level of centrality required by an economic activity.
o Goods/services requiring higher level of sales/profit must locate in central places with higher
order of centrality or higher order central places.
o In contrast, lower order good/services are ubiquitous found in every central place as they do
not need higher level of centrality to realize profit.