Suppose Valerie earns $525 per week working as a cook for Wingies. She uses $8 to take a yoga class at Big Bend. Big Bend pays Shen $350 per
week to instruct yoga. Shen uses $200 to purchase chicken wings from Wingies.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Factor Market
Event
Valerie earns $525 per week working for Wingies.
Shen spends $200 to purchase chicken wings from Wingies.
Shen earns $350 per week working for Big Bend.
Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that
apply.
The $200 Shen spends to purchase chicken wings from Wingies
Valerie's labor
Product Market
The yoga class Valerie receives
The $350 per week Shen earns working for Big Bend