Which statement is true?

A) Rent,but not the interest rate is determined by supply and demand.
B) The interest rate,but not rent,is determined by supply and demand.
C) Both rent and the interest rate are determined by supply and demand.
D) Neither rent nor the interest rate is determined by supply and demand.

Both rent and the interest rate are determined by supply and demand. The principle of supply and demand applies to all goods and services, including rental properties and lending. When there is high demand for rental properties, landlords can raise the rent, whereas when there is high demand for loans, lenders can raise interest rates to maximize their profits. Conversely, when there is a surplus of rental properties or loans, prices will fall to attract more customers.