The Gravity Model Predicts That the Optimal Location of a Service

question 69

Multiple Choice

The gravity model predicts that the optimal location of a service is

• A) directly related to the number of people and services in the area and inversely related to the lengths of highways and railways that access it.
• B) directly related to the range in the area and inversely related to the hinterland.
• C) directly related to the number of people in the area and inversely related to the distance people must travel to access it.
• D) directly related to the median of people in the area and inversely related to the meridian of people who travel to access it.
• E) directly related to the distance people must travel and inversely related to the number of people in the area.

---

Definitions:

Substitutes

Goods or services that can be used in place of each other, fulfilling the same needs or desires.

Complements

Goods or services that are used together, where the use or consumption of one enhances the use or consumption of the other.

Law Of Supply

The Law of Supply states that, all else being equal, an increase in price results in an increase in the quantity supplied.

Quantity Supplied

The supply of a good or service that businesses intend to sell, given a certain price point.