Final answer:
The price and quantity traded in a market are determined by the interaction of buyers and sellers, leading to an equilibrium where market supply equals demand without governmental intervention.
Step-by-step explanation:
The price and quantity traded in a market are determined by C. buyers and sellers through the interaction of demand and supply. This process ultimately leads to an equilibrium where the market price and quantity where supply equals demand is established. Both the buyers' willingness to pay and the sellers' willingness to accept are crucial in reaching this market equilibrium.
In a market-oriented economy, prices serve as a mechanism for collecting, combining, and transmitting information about the relationship between demand and supply. This allows buyers and sellers to make informed decisions based on the market conditions, without needing a government agency to determine prices and quantities. Hence, the correct answer to which entity determines the price and quantity traded in a market, is mainly a result of negotiation between buyers and sellers.
In a market, the price and quantity traded are determined by buyers and sellers. The interaction between buyers and sellers in a market determines the equilibrium price and quantity. When demand for a product exceeds supply, prices tend to rise, encouraging more sellers to enter the market. On the other hand, when supply exceeds demand, prices tend to fall, encouraging buyers to purchase more.