In the cob-web model of agricultural markets, which of the following statements is true concerning the demand and supply functions?
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A) Demand function is usually perceived as downward-sloping, and the supply function is upward-sloping, reflecting time lags in production
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B) Both demand and supply functions are considered to be horizontal, reflecting no impact of price on demand and supply
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C) The demand function is upward-sloping, and the supply function is downward-sloping, indicating the instantaneous effect of price changes
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D) The demand function remains constant, while the supply function forms a cobweb-like structure in response to fluctuations in demand