Principles of Real EstateQuestion 24 of 120

Which of the following BEST describes the economic characteristic of real estate known as 'scarcity'?

a.Land can be moved to where demand is highest
b.All parcels of land are exactly alike
c.The total supply of land is limited relative to demand
d.Land improvements never wear out

Explanation

Scarcity refers to the limited supply of land relative to population and demand, which supports its economic value. Physical characteristics of land include immobility, indestructibility, and uniqueness (non-homogeneity).

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