2. The circular-flow model The following diagram presents a drcular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the Inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when purchase in factor markets Suppose Crystal earns $700 per week working as a doctor for the Medical Clinic. She uses $9 to buy a box of aspirin at Pillmart Pharmacy, Pillmart Pharmacy Days Brian $250 per week to work the cash register. Brian uses $350 to purchase medical services from the Medical Clinic Based on this model, households earn income when purchase in factor markets Suppose Crystal earns $700 per week working as a doctor for the Medical Clinic. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Brian $250 per week to work the cash register. Brian uses $350 to purchase medical services from the Medical Clinic Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Crystal earns $700 per week working for the Medical Clinic Crystal spends $9 to buy a box of aspirin. Brian spends $350 to purchase medical services from the Medical Clinic Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, Inputs, or outputs. Check all that apply The $250 per week Brian earns working for Pillmart Pharmacy The $350 Brian spends to purchase medical services from the Medical Clinic The aspirin Crystal receives Crystal's labor