Allen and Lewis are friends who each recently purchased real estate. Allen purchased a patio home in a small town an hour from the city, while Lewis purchased a condo in a really hot area near the city center. Although they paid similar amounts for their properties, if in six months Lewis' condo is worth much more. Which economic characteristic does this demonstrate?

Area preference

Explanation:

Hi, the economic characteristic that this case demonstrates is area preference.

Area preference is a very important land characterist that includes many factors like:

History, convenience (in this case the distance between the area purchased and the city), and reputation. These factors will affect the price of the land.

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