In a free market, sellers do not determine prices; buyers and sellers negotiating in the marketplace determine them. A seller may want to receive a set price for a product or service, but the quantity buyers demand at that price may be quite low. If the seller lowers the price, the quantity demanded is likely to increase. This phenomenon is known as the microeconomic concept of supply and demand. Prices are set by buyers and sellers in free-market capitalism. The microeconomic concepts of supply and demand establish prices based on buyers and sellers negotiating. Identify the components of the supply-and-demand chart using the appropriate terminology.