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Explain the Supply and Demand of Products, Factors of Production

question 141

Essay

Explain the supply and demand of products, factors of production, and the payments for the products and factors of production as described in the circular flow diagram.


Definitions:

Substitution

A method of replacing a variable with a value or another expression.

Equations

Mathematical statements that assert the equality of two expressions, often involving one or more variables.

Elimination

A method in algebra for solving systems of equations, removing one variable at a time to find their values.

Linear Equations

Equations between two variables that produce a straight line when graphed.

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