Answer:
a. George buys a Tesla Model S.
Product market. Demanded by household and supplied by the firm
b. Tesla increases employment at its Fremont plant.
Factor market. Demanded by firm and supplied by the household
c. George works 20 hours per week at McDonald’s.
Factor market. Demanded by firm and supplied by the household
d. George sells the land he owns to McDonald’s so that it can build a new restaurant.
Factor market. Demanded by firm and supplied by the household
Explanation:
a. George buys a Tesla Model S.
The transaction took place in the product market.
The good was demanded by household
The good was supplied by the firm
b. Tesla increases employment at its Fremont plant.
The transaction took place in the factor market.
The labor was demanded by firm
The labor was supplied by the household
c. George works 20 hours per week at McDonald’s.
The transaction took place in the factor market.
The labor was demanded by firm
The labor was supplied by the household
d. George sells the land he owns to McDonald’s so that it can build a new restaurant.
The transaction took place in the factor market.
The factor of production was demanded by firm
The factor of production was supplied by the household
