Question

John works a part-time job at a local fast food restaurant. He saves his money to purchase a used car for $2,500. Because the tires on the vehicle that he is going to purchase are worn, he negotiates a set of new tires to be placed on the vehicle prior to the official sale. The dealership purchases the tires from the Bridgestone factory to placed on the vehicle. John writes a check for his purchase and drives the car to his job that evening. The purchase of the used car in this scenario would describe John's utilization of

Answer 1

the product market

The product market is where final goods or services are offered for sale by firms. Households purchase these final goods and services and in return the firms receive revenue to be used to cover the costs of the business including human resources. This is one facet of the circular flow of business.

Answer 2

The factor market would be the best answer

Your welcome!