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Figure Q 4 shows three residential zones ( A , B & C ) , 5 k m apart among each other, that are linked

Figure Q4 shows three residential zones (A,B & C),5km apart among each other, that are linked
by straight highways. There are 10000,20000 and 5000 households in zone A, B and C,
respectively. It is known that the trip productions per week follow this relationship:
Pi=j?(AjHi-Hi20xij2)
Where Pi,Hi, are, respectively, the trip productions and number of households in zone i. The
variable Aj is the Relative Attractiveness of the shopping centre; xij is the shortest distance (in
km) between zone ?? and shopping centre j along the highways.
(a) A developer plans to build a new shopping centre (called S1) with a Relative Attractiveness
of 6 units along the highway between A & B. Where should the developer build S1 such that the
number of customers per week is maximized? What is the maximum number of customers per
week?
(b) After the first developer has built S1 at the location as determined in (a), a second
developer decides to open another shopping centre (called S2) with a relative attractiveness
of 12 units along the highway between A & B. He has two options for the location of S2, either
(i) In the middle between A & B, or
(ii) At the same location of S1 as determined in (b)(right next to S1)
Between the two options, what is the best location for $2 if the second developer wants to
maximize S2's customers?
You may assume that the gravity model calibrated for this situation has these coefficients: C=2
and all socioeconomic adjustment factors equal 1.
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