====== Fundamentals of Transportation Curves ======

  * **FT = Firm Transportation**
      * Reservation = Fixed Cost
      * Commodity = Variable Cost

  * **IT = Interruptible Transportation** {{ :transportation_curve_1.png?400|}}
      * Commodity = Variable Cost

  * **FDQ = Firm Discount Quantity**
      * Transport rates fully discounted down to the Lowest Level

  * **ZDQ = Zero Discount Quantity**
      * Transport rates not discounted at all, at max rates

  * **NDQ = Negative Discount Quantity**
      * Representing a premium over max rates

  * **NDQ Mult = Negative Discount Quantity Multiplier**
      * Multiplier used with the max rate to determine the height of the hockey-stick portion of the transportation curve

{{:transportation_curve_4.png?400|}}

**G2M2® Case Spatial Equilibrium**

{{:transportation_curve_5.png?400|}}

**G2M2® Case Spatial Equilibrium with Constrained Transportation**

Transportation constraints raise prices in delivery areas and reduce prices in supply areas and lower both consumer and producer surplus.

{{:transportation_curve_6.png?400|}}


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