Free Pennsylvania Real Estate Practice Exam Practice Question
Which of the following is a basic principle of value?
Correct Answer: C
Rationale: Value is fundamentally influenced by the principle of substitution, which posits that if two goods serve the same purpose, the value of one will be affected by the availability and price of the other. This principle helps explain consumer behavior and market dynamics.
Option A, price, is a measure of value but not a principle itself. Option B, reconciliation, relates to resolving differences rather than a value principle. Option D, obsolescence, refers to a decline in value due to outdatedness, but it is not a foundational principle of value. Thus, substitution stands out as the core principle guiding value assessment.
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