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If two similar homes are for sale, the lower-priced house will usually be purchased first. This is an example of the principle of:

a) Supply and demand
b) Substitution
c) Regression
d) Progression

User Noah May
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1 Answer

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Final answer:

The principle that indicates the lower-priced house will generally be purchased first is supply and demand, according to the law of demand.

Step-by-step explanation:

If two similar homes are for sale, the concept that the lower-priced house will usually be purchased first relates directly to the principle of supply and demand. This principle is rooted in the law of demand which states that a higher price leads to a lower quantity demanded and conversely, a lower price tends to result in a higher quantity demanded. Applied to the housing market, when all other variables are held constant, consumers will gravitate towards the lower-priced option, especially when it compares favourably with other, more expensive, similar options.

User Chizou
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