Question

Complete the sentences below using the correct term: buyer, seller, product market, factor market, household sector, or firm sector. ben has a large property where he grows apples and provides them to her local trader joe’s stores for purchase.

Answer 1

Households are demanders in the goods market and suppliers in the factor market, while firms are suppliers in the goods market and demanders in the factor market. In the labor market, firms demand labor which households supply. In the financial market, households can be both demanders and suppliers, while firms usually demand capital.

Step-by-step explanation:

In the context of economic markets, households are typically the demanders in the goods market because households buy products. They use their income to purchase goods and services from various businesses. Meanwhile, firms act as the suppliers in the goods market since they sell products they produce, like Ben's apple business providing apples to Trader Joe's stores.

In the factor market, the roles of households and firms are reversed. Households are the suppliers because they sell factors of production, which include labor, land, capital, and entrepreneurship. Conversely, firms are the demanders in the factor market since they buy factors of production to produce goods or provide services. In the labor market, firms are demanders as they seek employees, and households are suppliers when they offer labor. In the financial market, households can be both demanders and suppliers depending on whether they are saving or borrowing while firms typically demand capital for investment.