Final answer:
Market area is the geographic area around a central place where people acquire goods and services. Range is the maximum distance people are willing to travel for a specific good or service. Threshold is the minimum population required to support a good or service in a given market area.
Step-by-step explanation:
In Central Place Theory, the concepts of market area, range, and threshold are important.
Market Area:
The market area, also known as the hinterland, is the geographic area surrounding a central place where people come to acquire goods and services. The size and shape of the market area depend on factors such as transportation infrastructure, competition, and consumer preferences.
Range:
The range of a good or service refers to the maximum distance a person is willing to travel to obtain it. Higher order goods, such as luxury items or specialized services, have a larger range as people are willing to travel longer distances for them. Lower order goods, like everyday necessities, have a smaller range.
Threshold:
The threshold population is the minimum number of consumers required to support a particular good or service in a given market area. Higher order goods typically have a higher threshold population, while lower order goods have a lower threshold population.
For example, a major league baseball team requires a threshold population of around two million people to sustain a franchise, while a Starbucks Coffee shop only needs a threshold of about 5,000 people.