Question

You are thinking of locating your restaurant one of 2 locations: location A has a trade radius of 5 miles with a population

density of 1,000 per square mile; location B has a trade radius of 7 mlles with a population density of 500 per square mile. Which trade area
has more potential customers?

Answer 1

a. location a

Step-by-step explanation:

Answer 2

Location 1 has more potential customer.

Step-by-step explanation:

LOCATION 1

Trade Area = Population Density / Trade radius

Trade Area = 1000 / 5 = 200 miles

This means there are potential customers 200 miles away

LOCATION 2

Trade Area = Population Density / Trade radius

Trade Area = 500 / 7 = 71.4 miles

This means there are potential customers 71.4 miles away