When land is in short supply and in high demand:

When land is in short supply and in high demand:

• A. It will be more valuable
• B. It will be less valuable
• C. It will be influenced by external factors
• D. It will be appraised at market value

Answer: (A)

When a resource is scarce and highly desired, competition among buyers drives up the price. Land is finite and its supply is not easily increased, so in situations of high demand it becomes more valuable because buyers are willing to pay more to secure it. This basic supply-and-demand dynamic is what pushes value upward, making the land more valuable. While external factors can influence value and appraisals are based on market data, the key idea here is that scarcity combined with strong demand leads to higher value.

When a resource is scarce and highly desired, competition among buyers drives up the price. Land is finite and its supply is not easily increased, so in situations of high demand it becomes more valuable because buyers are willing to pay more to secure it. This basic supply-and-demand dynamic is what pushes value upward, making the land more valuable.

While external factors can influence value and appraisals are based on market data, the key idea here is that scarcity combined with strong demand leads to higher value.