Which statement best summarizes the role of supply and demand in setting
prices for goods?
A. Prices are set by finding a balance between the high prices sellers
prefer and the low prices buyers prefer.
B. Prices are set by adding up the total supply and demand of a
product and converting it to a dollar amount.
C. Prices are set by identifying the demand for a product at a certain
price and convincing buyers to pay a little more.
D. Prices are set by sellers creating a large supply of a product and
then determining how much demand exists.