49. 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.
The principle of scarcity indicates that limited availability of desirable features, such as unobstructed views, can drive up property values. Hence, homes with such features are often priced higher because they are in demand yet not widely available.
A) Fixity
Fixity refers to the permanence of land and its improvements, indicating that land cannot be moved or destroyed. While this characteristic is important in real estate, it does not relate to the valuation of properties based on their views, making this option incorrect.
B) Scarcity
Scarcity is the correct choice as it describes the phenomenon where limited resources or desirable attributes, such as unobstructed views, lead to increased demand and higher prices. This economic characteristic directly applies to the context of real estate pricing.
C) Indestructibility
Indestructibility refers to the notion that land cannot be destroyed; it remains over time. While this is a fundamental aspect of real estate, it does not explain why homes with unobstructed views are valued higher, making this option incorrect.
D) Setback value
Setback value pertains to the regulations on how far structures must be from property lines, affecting the usable area of a property. This concept is unrelated to the desirability of views and their impact on property pricing, thus making this option incorrect.
Conclusion
Scarcity is the defining characteristic illustrated in this example, as it highlights how limited availability of certain desirable features, like unobstructed views, can significantly increase property values. The other options fail to capture this economic principle, focusing instead on unrelated aspects of real estate.