Property Valuation

In Missouri appraisal, 'supply and demand' affects value because:

AMore supply always means higher prices
BWhen supply is limited and demand is high, prices rise; when supply exceeds demand, prices fall✓ Correct
CValue is independent of supply and demand in real estate
DThe government sets real estate prices

Explanation

The principle of supply and demand is fundamental to real estate value: high demand with low supply drives prices up (seller's market); high supply with low demand drives prices down (buyer's market).

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