Consider the market area of food stores in a region described by the following assumptions: (i) the per capita demand for food is 30 units; (ii) population density is 40 people per square mile; (iii) the land area of the region is 100 square miles; (iv) the output of the typical firm is 6000 units.
d - per capita demand
e - population density (of consumers)
A - land area of region
q - output per firm
A. How many food stores will be in the region?
B. How large is the market area for the typical food store?
Calculate changes if
a. Per capita demand increased to 60
b. Total square miles decreased to 80
c. Population density changed to 30
d. Output per firm increased to 10,000