For a property to have value, it must possess which of the following characteristics?

To establish why the characteristics identified in the correct answer—utility, scarcity, desirability, and effective purchasing power—are essential for a property to possess value, it's important to understand each of these concepts.

Utility refers to the ability of a property to satisfy a need or want. A property must serve a purpose that meets the expectations or requirements of potential users or buyers to be considered valuable. For example, a home that provides shelter or a commercial property that offers space for business activities demonstrates utility.

Scarcity indicates that a property is limited in availability. If a particular type of property is in high demand but limited in supply, it tends to have a higher value. The economic principle of supply and demand dictates that as scarcity increases, so does the potential for increased value.

Desirability involves the buyer's interest in a property based on its features and location. A property that is located in a desirable neighborhood or has appealing attributes (like a beautiful view or modern amenities) will likely be more valued in the market. Buyers are motivated by personal preferences and needs, influencing the desirability of a property.

Effective purchasing power reflects the financial ability of buyers in the market to pay for a property. Even if a property possesses utility, scarcity, and desirability