In a walk-up without a lift, a higher floor commands a lower price
A worked RES examination question on price indices, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
The two walk-up blocks have four storeys and no lift; the other two blocks are twelve storeys and lift-served. A buyer asks how floor level bears on price in each.
Which statement is correct?
The answer, and why
Answer: B
The rule. In a walk-up without a lift, a higher floor commands a lower price. In a lift-served block the ordinary relationship holds and a higher floor commands more.
Why B is correct. The development contains both configurations, and the relationship runs in opposite directions in each.
The other options.
- A applies the general rule throughout.
- C inverts both.
- D confines the effect to commercial property.
Exam note. The presence of a lift is the switch. The same development can contain blocks where height helps and blocks where it hurts.
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