Property Valuation
Scarcity as a principle of value means that:
AAbundant supply increases value
BValue tends to increase as supply decreases relative to demand✓ Correct
COnly scarce properties can be appraised
DProperties in scarce locations are always overvalued
Explanation
Scarcity is one of the four elements of value (DUST: Demand, Utility, Scarcity, Transferability). When supply is limited relative to demand, value increases. Abundant supply with constant demand reduces value.
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