Which of the Following Are Disadvantages of Locating in a Central

question 202

Multiple Choice

Which of the following are disadvantages of locating in a central business district?

• A) Intense competition
• B) High rental rates
• C) Traffic congestion and inadequate parking facilities
• D) All of the above

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute a product with a cheaper alternative.

Income Effect

The change in consumption resulting from a change in real income, typically due to a change in prices, that can increase or decrease purchasing power.

Affordable Consumption Options

Choices of goods and services that are within the financial reach of a consumer, considering their income and expenses.

Inferior Goods

Goods whose demand decreases when consumer income rises, opposite of normal goods.