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Explain the Bid Rent Theory and its implications for land prices and demand for real estate near a city's central business district (CBD).
The Bid Rent Theory is a geographical economic theory that explains how land prices and demand for real estate change with distance from a city's central business district (CBD). It suggests that businesses and individuals are willing to pay more for land closer to the CBD, as it offers greater accessibility and proximity to amenities. This results in a concentric pattern of land use, with higher-value properties located closer to the center and lower-value properties located further away.
What is the Central Place Theory and how does it explain the distribution of cities and towns based on their size, function, and market area?
Central Place Theory is a geographical concept that explains the distribution of cities and towns based on their size, function, and market area. It suggests that cities of different sizes and functions serve different roles within a regional economic system, with larger cities providing specialized goods and services to a wider area.
What pattern of land use does the Bid Rent Theory predict, and why?
The Bid Rent Theory predicts a concentric pattern of land use, with higher-value properties located closer to the center and lower-value properties located further away, due to businesses and individuals being willing to pay more for land closer to the CBD.
How does the Bid Rent Theory relate to the accessibility and proximity to amenities near a city's central business district?
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What roles do larger cities play according to the Central Place Theory, and how do they provide goods and services to a wider area?
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