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I know 便利 means something convenient or handy but can it also be used to describe a place?
Ex. 1 If City A is close to city B, can I say that city A is 便利 (because it is easy and fast to travel to city B)?
Ex. 2 If city A has lots of supermarkets, restaurants and banks, can it be described as 便利？
Yes, a city or place may be described as 便利. Both of your examples are valid.
However, your statement sounds peculiar:
I know 便利 means something convenient or handy but can it also be used to describe a place?
I would say:
便利 means something convenient or handy therefore it may be used to describe a characteristic of a place
Consider the above to be a simplified version of the following:
You may use 不便 for the opposite effect:
Consider the above to be a simplified version of the following:
