In the classic monocentric urban bid-rent model, consider the following: Assertion (A): Competition for accessible central sites tends to increase land demand and bid rents as distance to the CBD decreases. Reason (R): The CBD has a high concentration of commercial offices, retail activity and urban services. Choose the most appropriate answer.
Both (A) and (R) are correct and (R) is the correct explanation of (A)
In the classic monocentric model, the CBD concentrates commerce, employment and services. Its accessibility creates competition for central sites, raising demand and bid rents toward the centre. Thus the reason explains the assertion within this model.