In the following example an individual has purchased a home near the ocean in Half Moon Bay,CA, business and finance homework help

n ;Chapter two the lesson takes us into the area of value and contributing factors. ;

;In the following example an ;individual ;has purchased a home near the ocean in Half Moon Bay,CA ; for 500,000 and has a swimming pool installed at a cost of $30,000 and then unexpectedly, ;their ;employer transfer them to another state causing ;the home to be put on ;the market for sale.

The price ;the seller lists the property for is $530,000, however after a reasonable amount of time, the best offer ;received is only $480,000 with the buyer stating that the pool is undesireable in that area due to the cool weather and they are actually offering a lower price ;because ;of the pool!

• What principle applies to this situation?
• How might you have avoided such a problem in the first place?

It has to be one of the following Supply & Demand Substitution Competition Change Anticipation Balance Surplus Productivity Competition Conformity Progression or Regression ;