In central place theory, which two concepts determine the size of a central place’s market area?

• A. Threshold and range.
• B. Distance and velocity.
• C. Density and growth rate.
• D. Capacity and zoning.

Answer: (B)

In central place theory, the size of a central place’s market area comes from two ideas: range and threshold. Range is how far people are willing to travel to use the service—this sets the geographic extent of the market. Threshold is the minimum number of customers needed to make the service viable—this determines how large the customer base must be to support the store or service.

Together, these two shape the market area: a larger range spreads the service farther, expanding the market, while a higher threshold requires enough demand to sustain that service, which can limit how many nearby central places there are and influence how far their influence reaches. Velocity isn’t a factor in this model, since the theory focuses on travel distance rather than travel speed. Density or growth rate and capacity or zoning don’t capture the essential combination of how far customers will go and how much demand is needed to justify the service.