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he following diagram presents a circular 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.
Based on this model, households earn income whenfirms purchaseresources in resource markets.
Suppose Susan earns $575 per week working as a doctor for the Medical Clinic. She uses $8 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Raphael $275 per week to wash cars. Raphael uses $125 to purchase medical services from the Medical Clinic.
Identify whether each of the following events in this scenario occurs in the resource market or the product market.
Event
Resource Market
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