EPF2: Economic Systems
Doritos, Lay, and Cheetos keep their prices similar so that their products can compete with the others.
If one company lowers their prices then the others do also so that they don't get beat out.
Competition among consumers increases prices and allocates goods and services to those who are willing and able to pay the most for them.
EPF. 2 I
EPF. 2 J
The circular flow of models is important in an economy because
1) measures national income
2) provides knowledge of interdependence
3) illustrates the unending nature of economic activities
Sole proprietorship : A type of business that is entirely owned and run by one person.
Partnership : Where two people own and run a business together with equal responsibilities and liabilities within it.