Which of the following is NOT true about the fundamentals of supply and demand?

The assertion that supply and demand apply only to consumer goods is not true because these principles are fundamental to a wide array of economic activities, including real estate markets. In fact, supply and demand dynamics are crucial in various markets, meaning they are not limited to consumer goods alone. They play a significant role in determining the availability of properties and the pricing of real estate, which is directly influenced by the balance between how many properties are available (supply) and how many buyers or tenants are seeking those properties (demand).

The other options provide accurate statements about the fundamentals of supply and demand. They explain significant aspects of market behavior by illustrating how prices and availability fluctuate based on changing consumer preferences and market conditions. They are essential in valuing space because understanding the interplay of supply and demand allows investors and appraisers to make informed decisions about property values. Finally, these principles influence pricing mechanisms, with changes in either supply or demand leading to corresponding adjustments in market prices.