In Central Place Theory, what best defines the hinterland?

• A. The market area served by a central place, determined by threshold and range.
• B. The political boundary surrounding a city.
• C. The area most affected by transportation costs.
• D. The geographic extent of a city's downtown core.

Answer: (A)

In Central Place Theory, the hinterland is the market area surrounding a central place from which customers travel to obtain its goods and services. The size of this area depends on threshold (the minimum number of customers needed to support the service) and range (how far people are willing to travel). Because of these factors, the hinterland is defined by economic demand and distance, not by political borders, transportation-cost spillovers alone, or the physical footprint of a city's downtown. For example, a shop with a high threshold and long range will have a larger hinterland because it serves customers spread farther away, while a basic store with a low threshold serves a smaller hinterland.