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A startup company produces luxury furniture. It purchases wood from a local lumber mill and turns the wood into tables, chairs, and desks. Once the furniture is finished, trucks take it to a local mall where it is sold at a specialty store. Customers come from all over the state to buy new pieces of furniture that arrive each month.

Which element of the story represents households in the circular flow model?

A. The specialty store in the mall
B. The lumber mill
C. The furniture company
D. The customers who shop at the mall


Sagot :

Final answer:

Customers who shop at the mall represent households in the circular flow model.


Explanation:

Customers who shop at the mall represent households in the circular flow model. In the model, households provide income by purchasing goods and services from firms, which in turn drives the economy.


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