The correct answer is b) traffic problems are greater in the city due to its greater population density
Explanation:
The bid-rent theory is an economic geographical theory that refers to how the price and the demand of real state changes in relation of the raise of distance between the business center and the area of residence. It establishes that the users of land will compete among each other to have the property closer to downtown.
This is based on the idea that retail establishments want to maximize their profitability, so they are much more willing to pay more for land close to the business area and less for land further away from this area. This theory is based on the reasoning that the more accessible an area is (ie, the higher the concentration of clients), the more profitable it is.
Nevertheless, nowadays people prefer to live in the outer ring, the suburbs, where they can obtain bigger pieces of land and bigger properties for the same or even less cost than in the inner ring, close to the business center, while people with less power of acquisition (elderly, young persons) live.
According to Pacione (2005, 157) “many of the CBD or city centres, in the US and the UK, have been transformed by their social and economic processes, such as deindustrialisation, retail activities, decentralisation of population, increased socio-spatial polarisation andreduced accessibility due to the increasing demand for car ownership.”
In this sense, cities are the production of social and economic processes in which the concentration of activities and diversity of uses become part of a self-organising economy in the city.
According to Pacione (2005, 157) “many of the business centers in the US and the UK, have been transformed by their social and economic processes, such as deindustrialisation, retail activities, decentralisation of population, increased socio-spatial polarisation and reduced accessibility due to the increasing demand for car ownership.” In this sense, cities are the production of social and economic processes in which the concentration of activities and diversity of uses become part of a self-organising economy in the city.
Pacione (2005,157) refer that many of the business centers in developed countries have being transformed by social and economic processes including reduced accessibility due to increasing demand for car ownership. therefore, cities have become the production of social and economic processes where the concentration of activities and diversity of uses become part of the economy of the city. Transportation networks have become essential for the theory to work as predicted; the transportation can increase convenience of commuting, increasing rent for owners, therefore, the place where socio-economic activities concentrate is dependent on location as much as in its connectivity, and also is dependent on the availability to get to the place: the bigger the turns to arrive, the less the interest to go to the store. Thus, nowadays, enterprises are willing to pay more not only if the establishments are located downtown but if they are accessible either by car, walking or by public transportation, this is why traffic problems can discourage the high-rent payment of a real state, even when it is located downtown.
