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Javier buys 800 square feet of wood flooring for his vacation home. What is this statement an example of in the circular flow model?

User TiBooX
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Final answer:

Javier buying 800 square feet of wood flooring is an example of households demanding goods and services in the circular flow model of the economy.

Step-by-step explanation:

In the circular flow model, Javier buying 800 square feet of wood flooring for his vacation home is an example of households demanding goods and services. This falls under the product market, where firms produce goods and services and sell them to households in return for revenues. Javier's purchase represents the flow of money from households to firms, reflecting the interaction between the two sides of the product market.

Learn more about The circular flow model of the economy

User Tarscher
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