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Why can market development be slow in a very low-density area?

Answer and explanation

Correct answer: Because the number of customers per unit of area may be low

Answer: A, because the number of customers per unit of area may be low. A market depends partly on demand: people who may buy food, clothing, tools, transport services and other goods. In a very low-density area, settlements may be far apart and the number of nearby customers may be small. A shop or service provider may therefore find it harder to sell enough goods to cover transport, rent and operating costs. A is correct, but it does not mean markets can never develop; roads, tourism, online trade, outside demand or a specialised resource can change the situation. B is wrong because low density does not mean that residents are always rich. C is wrong because population size and location influence potential local demand, even though other factors also matter. D is wrong because land area remains present. Memory cue: sparse customers spread over a large space can make regular local demand difficult to sustain.

Related tags

Low DensityMarket DemandSparse PopulationPopulation DensityPopulationGeographyClass 9 Mcq

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