Answered

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 sellers creating a large supply of a product and then determining how much demand exists.
C. Prices are set by adding up the total supply and demand of a product and converting it to a dollar amount.
D. Prices are set by identifying the demand for a product at a certain price and convincing buyers to pay a little more.



Answer :

GinnyAnswer

Final answer:

Supply and demand determine prices for goods through the laws of supply and demand and market equilibrium.


Explanation:

Supply and demand interact in the market to determine prices for goods. The Law of Supply states that more is supplied at higher prices, while the Law of Demand states that higher prices lead to lower quantity demanded. Market equilibrium is reached when quantity demanded equals quantity supplied at a certain price.


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