Question

Justify the following statement.

Transport creates place utility.

Answer 1

1. Transport is one of the important auxiliaries to trade.
2. Transport brings raw materials and people to the place of production and carries finished products to the market.
3. There are different modes of transport through it carries goods and people from one place to another. They are rail, road, water, and air.
4. If goods are produced in one place, they may not have demanded at that place only.
5. Transport carries them to another place where they are demanded and create place utility.
6. Thus, we can say that transport creates place utility.