A market that supports increasing prices as demand for property rises exemplifies which principle?

The principle that exemplifies a market supporting increasing prices as demand for property rises is supply and demand. This fundamental concept in economics states that when demand for a good or service increases, and if the supply remains constant or cannot keep pace, prices will rise. In the context of real estate, when more buyers are looking to purchase homes while the inventory remains limited, the competition drives up property prices.

Understanding supply and demand helps assess how factors like changing population trends, economic conditions, and shifts in buyer preferences influence property values. As more individuals seek to invest in property, the increased demand, coupled with finite supply, naturally leads to rising prices. This principle is foundational in appraising and assessing properties, helping professionals predict market behaviors and valuations effectively.

Other concepts like demand-driven pricing, market elasticity, and value assessment relate to market behaviors and evaluations but do not encapsulate the broad, fundamental relationship between supply and demand in the same comprehensive way.