42. A real estate licensee explains that a home with an unobstructed view is often sold at a higher price than those with limited views. This is an example of which of the following economic characteristics?
Answer: B
A home with an unobstructed view is often sold at a higher price due to scarcity.
Scarcity is an economic characteristic that refers to the limited availability of certain desirable attributes, such as unobstructed views in real estate. When a property boasts an unobstructed view, it becomes a rare commodity, often leading to higher market prices.
A) Fixity
Fixity refers to the permanence of land and buildings, indicating that they cannot be moved. While fixity is an important economic characteristic, it does not relate to the value increase associated with the availability of unobstructed views, making this option incorrect.
B) Scarcity
Scarcity accurately describes the economic principle that a limited supply of desirable features, like unobstructed views, can drive up property values. This principle underlines why homes with such views command higher prices in the market, confirming this option as correct.
C) Indestructibility
Indestructibility is the concept that land cannot be destroyed or diminished in value due to physical factors. While it is a significant characteristic of real estate, it does not pertain to the pricing implications of views, thus rendering this option incorrect.
D) Setback value
Setback value refers to the regulations governing the distance buildings must be from property lines. This concept does not relate to the desirability of unobstructed views or their impact on property pricing, making this option irrelevant in this context.
Conclusion
Scarcity is the correct answer as it encapsulates how the limited availability of properties with unobstructed views can enhance their market value. The other options do not connect to the economic principle illustrated in the scenario, affirming that scarcity is the defining characteristic in this case.