Question

How does the market determine the price and the quantities supplied and demanded?

A)A market price is established by a government agency and both suppliers and consumers have to accept it.
B)All of the suppliers get together and determine the price and the quantities that each firm will produce.
C)Competition among suppliers and consumers eventually brings the market to an equilibrium price.
D)A meeting of consumers establishes a price, then firms produce whatever quantities they think will give them a profit.