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Master Exam #3
Question 134 of 150
Question: "When identical or highly similar properties are offered for sale, the property offered at the lower price attracts the greatest demand." That statement is an illustration of which of the following principles of appraising:
A: Substitution;
B: Highest and best use;
C: Productivity;
D: Inflation.
Correct Answer is : A
The principle of substitution holds that if a buyer can find a substitute property at a lower price, that is the one he will buy.