Texas Real Estate State Practice Exam

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Prepare for the Texas Real Estate State Exam with comprehensive study materials. Engage in multiple choice questions and gain insights with in-depth explanations and examples. Ace your exam confidently!

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Which economic characteristic of land describes a short supply where demand is high?

Fixity
Modification
Scarcity
Situs

The correct answer is: Scarcity

The correct answer is scarcity, as it directly refers to the economic characteristic of land that indicates a limited supply in relation to a high demand. When land is described as scarcer, it suggests that there is not enough available land to meet the needs of buyers or developers, often leading to increased prices and competition. This concept is fundamental in real estate, as it influences market dynamics significantly. The other options, while relating to land and its characteristics, do not pertain to the idea of limited supply. Fixity refers to the permanence of land as a resource; once developed, it remains in place. Modification deals with how land can be altered or improved upon. Situs, on the other hand, pertains to the location of a property and its value considering its surroundings. All these concepts contribute to the overall understanding of real estate but do not capture the essence of scarcity as it is specifically linked to the relationship between supply and demand.