Which statement is TRUE about the principles of supply and demand?

The statement that demand tells us how many consumers are willing and able to afford property is true because demand fundamentally encompasses the willingness and ability of consumers to purchase goods or services at various price levels. In real estate, this means that demand reflects both how many potential buyers or renters want to acquire property and their financial capability to do so. High demand in a market usually leads to increased prices, as more people are competing for the available properties.

Understanding demand is crucial for both buyers and sellers, as it impacts pricing strategies and investment decisions. When demand is high, sellers may raise prices, while buyers need to be prepared for competition. Conversely, low demand might lead to price drops, affecting the overall market dynamics.

The other statements do not accurately capture the principles of supply and demand as they pertain to the real estate market. For instance, while supply does refer to the number of properties available, it doesn't encompass the overall principles regarding demand, which is much broader. In addition, market trends are important, but demand is influenced by various factors beyond just those trends, such as consumer income and preferences. Lastly, while supply can impact quantity, it doesn't directly determine the quality of the properties themselves; quality is influenced by different factors, including maintenance and construction