The Principle of Change states that market value is affected by which types of forces?

The Principle of Change recognizes that various forces influence market value over time, and the correct answer identifies four specific types of forces: physical, governmental, social, and economic.

Physical forces pertain to the natural characteristics and conditions of a property, such as land use, climate, and environmental features, which can directly impact its desirability and value. Governmental forces involve regulations, zoning laws, and policies that can change the way properties can be used or developed, thus affecting their market value. Social forces encompass the demographics, lifestyle trends, and cultural shifts within a community that can alter demand for particular property types. Economic forces relate to the broader economic environment, including employment rates, inflation, and market cycles, which heavily influence buyers' purchasing power and willingness to invest.

The other options suggest different groupings of forces but may not encompass the full range of influences on market value or mix components in less coherent ways. Only the selection that includes physical, governmental, social, and economic captures the multifaceted nature of the changes affecting real property value accurately.