Alabama Real Estate Practice Exam

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What principle is based on the concept of proportionality in value?

Substitution
Change
Balance
Anticipation

The correct answer is: Balance

The principle based on the concept of proportionality in value is Balance. This means that when one thing changes, another thing changes in proportion to the first. Option A, Substitution, refers to using one thing in place of another. Option B, Change, refers to a difference or modification. Option D, Anticipation, refers to expecting or predicting something to happen. While all of these concepts are related to value, none are specifically based on proportionality, making them incorrect options.