What is the price of a four-bedroom home that is located 6 miles from the city center?

A hedonic study of the housing market generates the following information:

Base price (Bp). The average house has three bedrooms and is five miles from the city center. The price of the average house is $90,000.

Access price (D). The price of housing drops by $1000 for every additional mile from the city center.

Bedroom price (BR). The price of housing increases by $10,000 for every additional bedroom.

A. Write out the hedonic equation.

B. Based on the above information; What is the price of a four-bedroom home that is located 6 miles from the city center?

(SHOW YOUR WORK)