The size of a market is determined in large part by the density of demand for the good or service and the relative importance of transportation costs. Explain how increased fuel prices might impact the size of markets for food products such as fruits and vegetables.
Answer:
fuel prices may price out long distance transportation of fruits and veggies. It may be cheaper to sell local as opposed to ship so markets located at a distance have few suppliers thinning it and giving those in the market more pricing power.
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