Question

An appraiser relies on the principle of substitution, he then assumes that one property may be substituted for another in terms of:

Answer 1

The principle of substitution in economics refers to the interchangeability of goods and services, where one property or item can be substituted for another. Appraisers often use this principle to determine the value of a property by comparing it to similar properties that can serve as substitutes.

Step-by-step explanation:

The principle of substitution is an important concept in economics. It refers to the interchangeability of goods and services, where one property or item can be substituted for another. This principle is often used by appraisers to determine the value of a property by comparing it to similar properties that can serve as substitutes. For example, when appraising a house, the appraiser may look at comparable houses in the same neighborhood to determine its value.