Question

Provide an example of each of the following

1)Service with a low threshold:
2)Service with a medium threshold:
3)Service with a large threshold:
4)Service with a large range/Higher-order good:
5)Service with a small range/lower-order good:

Answer 1

1 ) buprenorphine treatment

2) Convenience goods and services

3) furniture

4) electrical goods

5) hairdressing,

respectively

Step-by-step explanation:

Threshold is the minimum population and range is the maximum distance needed to sustain a good. As such, it'd make sense for buprenorphine treatments (a rare service) to have a low threshold since not too many people will be buying it, but it's still sustainable since it's expensive.

"Medium" is a loose definition so I would say any convenience good or service would be good for this one.

Furniture would have a large threshold because a lot of people are moving and in need of furniture.

People are willing to travel great distances to get electrical goods because they're specialized goods and you can't just find them anywhere, thus, it has a large range.

Things like hairdressing aren't worth traveling great distances to receive so they have a small range.