According to the bid-rent model, which of the following individuals would be the one most likely to live closest to the central business district (CBD)? (Hint: Assume that work locations are located adjacent to each other at the center of the CBD)
A) A barista at the local coffee shop who uses a car to commute.
B) A doctor at the city hospital who uses a car to commute.
C) A barista at the local coffee shop who must walk to work.
D) A doctor at the city hospital who must walk to work.

Question

Quizplus · Accepted Answer

The bid-rent model suggests that individuals with higher incomes and shorter commutes are willing to pay more for housing closer to the CBD. Doctors typically have higher incomes than baristas, and walking to work is a shorter commute than driving. Therefore, a doctor who must walk to work is the most likely to live closest to the CBD.

According to the Bid-Rent Model, Which of the Following Individuals