Four Elements That Create Value Flashcards

Four Elements That Create Value Flashcards effective demand,which is desire coupled with the ability to satisfy the desire.Demandis desire or ability to purchase a commodity.Transferabilityrefers to the ability to transfer ownership of an item from one person, or entity, to another.Utilityis the ability or power of an item to perform a service or meet a need.scarcityrefers not just to a shortage of an item, but a shortage of an item relative to the demand for that item.(demand, utility, and transferabilityWhen scarcity combines with the other three elements value is enhanced immensely.Four Elements That Create Value(1) the property must be in demand, (2) it must have usefulness or utility, (3) there must be a degree of scarcity, and (4) it must be possible to transfer it legally in title or use.