Question

Why do larger cities support a wider range of goods and services?

Answer 1

Larger cities support a wider range of goods and services because larger cities have a huge population that implies that there will be wider range of consumption demand and many individuals will demand different types of goods and services, therefore, businesses in the larger city will aim to provide a wider range of goods and services in order to earn a profit by satisfying different types of the consumption choices that individuals are demanding. As we know in economics human wants are unlimited which are characterised by different types of demands for the goods and services, therefore, as the population of the city increases, many businesses will see the opportunity to earn profit by providing a wider range of goods and services.