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Consumers decisions affect producers, and producer decisions affect consumers.
A circular flow model
A circular flow of influences
Individual goods
R
The free-market system has a circular flow of influences.
Consumers decisions affect producers, and producer decisions affect consumers.
A circular flow model
Consumer decisions affect producers, and producer decisions affect consumers
A circular flow of influences
A. Free market
Individual goods
R
Consumers and producers influence each other in a circular fashion.
They speed up the flow of capital and wages
Antitrust laws consumer-protection regulations
Antitrust laws consumer-protection regulations