Tim and Sue have the smallest home in a sought-after neighborhood. The value of their home is increased because of the higher value of the other homes in the neighborhood. This is an example of what principle?

Question

Jazlyn Mathis

Social Studies

22 December, 22:01

Tim and Sue have the smallest home in a sought-after neighborhood. The value of their home is increased because of the higher value of the other homes in the neighborhood. This is an example of what principle?

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Sierra Hernandez · Answer 1

Progression

Explanation:

The Principle of progression in economics states that the value of the smallest home (or the low-end) property will be impacted with the variation in the value of the high end homes.

The valuation of the property depend on the locality of the neighborhood.

Hence,

with the increase in the value or the higher value of the other homes, the value of the smallest home will also increase.