Answered

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Which statement best summarizes the role of supply and demand in setting prices for goods?

A. Prices are set by adding up the total supply and demand of a product and converting it to a dollar amount.
B. Prices are set by finding a balance between the high prices sellers prefer and the low prices buyers prefer.
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.

Sagot :

GinnyAnsweridn

Final answer:

Supply and demand determine prices by reaching equilibrium between quantity demanded and quantity supplied, conveying information to buyers and sellers.


Explanation:

Supply and demand interact to determine prices for goods. The equilibrium price point is where quantity demanded equals quantity supplied, resulting in a balance between buyers' and sellers' preferences. Prices in the market are set based on the relationship between demand and supply, and they act as a mechanism to convey information to buyers and sellers.


Learn more about Supply and demand's role in setting prices here:

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