Property Valuation
A property in the Minneapolis-St. Paul metro sells for significantly more than similar properties in a rural Minnesota county. This is primarily explained by:
ABetter construction quality in the metro
BThe principles of supply and demand, location, and economic base—the metro has greater job opportunities, amenities, and demand✓ Correct
CHigher property tax rates in rural areas
DStricter building codes in the metro
Explanation
The significant price difference between metro and rural Minnesota properties reflects the forces of supply and demand, location value, and economic base. The Twin Cities metro offers more employment, services, cultural amenities, and infrastructure than rural areas, creating higher demand and prices for metro properties.
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