GEOG 597i
Critical Geospatial Thinking and Applications

The Law of Supply and Demand

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Figure 4.6: Supply-Demand Curve.
Credit: Drawn by George Van Otten and Dennis Bellafiore.

The range of a good is the distance (R) in both directions from a distribution point on a linear market that the good can generate demand (can be sold before the additional costs associated with distance are prohibitive).

Different goods have different thresholds. For example, low-cost items, such as bread or nuts and bolts, have low thresholds. In other words, people normally will not travel very far to obtain these things. Expensive items, however, usually have higher thresholds. Whereas a person would normally not be willing to travel two hundred miles to purchase a loaf of bread, he or she might be willing to travel that far to purchase a Rolls Royce (assuming he or she wants, and can afford to drive, a Rolls Royce). Although the car pictured below was priced at about $300,000.00, it is said that it corners rather well.

Rolls-Royce Ghost Art Deco Collection 2012
Figure 4.7: Rolls-Royce Ghost Art Deco Collection 2012.
Credit: CC BY-NC-SA 2.0 Some rights reserved by mdeuschl.
Loaves of Bread
Figure 4.8: Loaves of Bread.

As is true of goods and services, centers also fall into an order that is determined by the highest-order good offered within the center under consideration. In other words, high-order centers, offer high-order goods and services. Generally, smaller places are lower-order centers and, therefore, do not offer high-order goods. Conversely, high-order centers generally offer almost all the lower-order goods and services of low-order centers, but also provide access to high-order goods and services, such as Bentley automobiles or highly advanced surgical facilities and services.