Final answer:
A reference (option B) price is the correct term; it's the standard against which selling prices are compared and can indicate quality in markets with imperfect information.
Step-by-step explanation:
The correct answer to the student's question is 'B. Reference'. A reference price is the benchmark, original, or regular price against which buyers compare the actual selling price of the product. This concept is part of the Price System at Work in the market, where prices act as signals and are determined by supply and demand. Markets aim to reach an equilibrium price, where the quantity supplied matches the quantity demanded. However, in the presence of imperfect information, prices might also signal perceived quality to consumers, influencing their purchasing decisions.