Assignment:
Question 1. 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.
- Descriptions of the circular flow diagram and factors of production. Discuss how circular flow relates to current economic situations.
Question 2. Supply and Demand
- 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?
- Discuss the effects of a price change and how it might alter your decision to make a purchase, according to the determinants of supply or demand.