ECO204: Discussion posts about circular flow diagrams and supply and demand
Circular Flow Diagram
Explain how the circular flow diagram relates to the current economic situation. Using the circular flow diagram, explain a way that your family interacts in the factor market and a way that it interacts in the products market.
Analyze how the law of demand applies to a recent purchase that you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the item?
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Circular Flow Diagram
A circular flow diagram is the performance of an economy at a glance explaining the relationship that exists between households and firm, with a unit of exchange in which case may be a dollar or shilling (Mankiw, 2012). In a current situation, energy flow diagram will look into the relationship that exists between the market for goods and how the goods are produced, that is factors of production employed in production of the goods. This relationship will be explored against firms who put together the…..
APA
654 words
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