question archive Imagine that you just paid $50 for a new pair of jeans
Imagine that you just paid $50 for a new pair of jeans
Subject:EconomicsPrice:3.87 Bought7
Imagine that you just paid $50 for a new pair of jeans. Using the circular-flow diagram, answer the following questions about your purchase.
According to the circular-flow diagram, who made decisions about the jeans you bought?
What types of markets do you think were involved in the creation of and delivery of the jeans that resulted in you purchasing them?
Think about what happens to your $50 when you pay for the jeans. What parts of the circular-flow diagram correspond to the flow of goods and services for your jeans? What parts of the circular-flow diagram correspond to the flow of dollars after you buy the jeans?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
The circular flow diagram is shown below :
According to the circular-flow diagram, the decision about the jeans you bought was made by households.
The type of markets involved in the creation of jeans are small production units that may include households or small time manufacturers .
The type of markets involved in the delivery of jeans are retailers , firms etc .
The parts of the circular-flow diagram that correspond to the flow of goods and services for your jeans are " Markets for goods and services " & " Markets for factors of prodution " .
The parts of the circular-flow diagram that correspond to the flow of dollars after you buy the jeans are firms .
PFA
