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In the Circular-Flow Diagram,which of the Following Items Does Not

question 94

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In the circular-flow diagram,which of the following items does not flow from firms to households?


Definitions:

Profits

The financial gain obtained when the revenue from business activities exceeds the costs and expenses incurred in operating the business.

Price Discrimination

An approach where the same goods or services, either identical or very similar, are priced differently by the same seller in distinct markets.

Inelastic Demand

A situation where the demand for a good or service changes little when its price changes, indicating consumers' lack of sensitivity to price adjustments.

Price Discrimination

Price discrimination involves selling the same product or service at different prices to different groups of consumers, often based on factors like age, location, or purchase quantity.

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