Question

The Western Acres neighborhood is a highly desirable area in which homes very seldom go on the market. The Western Acres properties placed on the market sell very quickly and usually for or above asking price. Which principal of real estate applies to the homes in Western Acres?
A) Highest and Best Use
B) The Law of Supply and Demand
C) Anticipation
D) Competition

Answer 1

Answer: B) The Law of Supply and Demand

Explanation:

The law of supply and demand is an economic theory that describes the relationship between those selling a specific good, and its buyers.

It states that there´s a correlation between availability, demand, and price of a product: when there are low supply and high demand, the price increases, and vice versa. Such is the case with the Western Acres properties.