The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 11

Have you ever noticed how few gasoline stations are to be found in the center of large cities? With such heavy traffic, one ought to be able to do an excellent business.
(a) Why are there so few gasoline stations in the centre of large cities?
(b) Would it be efficient for city governments, which have the right of eminent domain, to take over a small amount of downtown land in order to provide gasoline stations in areas where the demand is obviously great?