How does urban land rent typically change as distance from the central business district increases?

• A. Declines with distance from the CBD
• B. Increases with distance from the CBD
• C. Fluctuates randomly with distance
• D. Remains constant with distance

Answer: (A)

In the monocentric city model, land rent is driven by accessibility to the central business district. The CBD concentrates jobs, services, and markets, so land near the center can command a higher willingness to pay. As you move away, transportation costs rise and central demand diminishes, making high rents less attractive. This creates a bid-rent gradient that slopes downward with distance from the CBD: urban land rent declines as distance increases. Real cities can show deviations due to multiple centers or special sites, but the general pattern is a decreasing rent with distance.