Property Valuation

The 'principle of supply and demand' in North Dakota real estate markets means:

ASupply always exceeds demand in rural areas
BProperty values rise when demand exceeds supply and fall when supply exceeds demand✓ Correct
CThe government controls both supply and demand
DDemand in urban areas is always greater than supply

Explanation

The principle of supply and demand states that price or value changes are driven by the relationship between supply and demand. When buyers compete for limited properties (demand > supply), prices rise; when there is excess inventory (supply > demand), prices fall.

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