Advanced Placement (AP) Human Geography Practice Exam 2026 – The Comprehensive All-in-One Study Guide for Exam Success

The bid-rent curve is a key concept in urban economics that illustrates how the price and demand for land vary with distance from the central business district (CBD). Essentially, it shows that as you move away from the center of a city, the willingness to pay for land decreases. This is primarily due to the accessibility and convenience that prime locations in urban areas offer, such as proximity to jobs, transportation, and amenities. Businesses and residents are willing to pay a premium to be nearer to these benefits, which is reflected in higher land prices.

The bid-rent curve effectively models how different types of land users—such as businesses or various categories of residents—compete for land near the city center. For example, commercial enterprises often have the steepest bid-rent curve, as their success hinges on customer foot traffic and accessibility, while residential users typically have a flatter curve, reflecting their different priorities.

In contrast, other concepts mentioned do not directly address how land value changes in relation to its proximity to the city center. The basic sector relates to the foundational industries of an economy but doesn't explain land pricing. Carrying capacity pertains to the maximum population or species that an environment can sustain before degrading, which focuses on resource limits rather than land value. Finally