The determination of price by bargaining between buyers and sellers is________

Analyze the question: The question asks for the term that describes how price is settled through bargaining between buyers and sellers.

Explain the concept: In Economics, the "higgling and haggling of the market" is the process of bargaining in which buyers try to pay less and sellers try to charge more until both agree on a price. It is common in Nigerian open markets, where you negotiate with traders over the price of tomatoes, clothes, or phone accessories.

Check each option:

• A. Sales by Auction: Buyers compete openly by bidding against each other, and the highest bidder wins. The price is driven upward by bidders, not by a two-way negotiation with the seller.
• B. Tender: Interested parties submit sealed bids or quotations, usually for contracts or supplies. There is no direct bargaining.
• C. Higgling and Haggling: Buyer and seller negotiate back and forth until they agree. This matches the question exactly.
• D. Price Control: The government fixes a maximum or minimum price by law, so no bargaining takes place.

Answer: The correct option is C. Higgling and Haggling.

Exam tip: When you see the word "bargaining" in a price-determination question, think "higgling and haggling." Link the other terms to their keywords too:

• Auction → bidding
• Tender → sealed quotations or contracts
• Price control → government