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Okay class so pretend this house
has an orange tree in its back yard
which produces oranges
there is a market for oranges so
the households will sell oranges to the factor market
also known as the market for resources
businesses like Tropicana need oranges to
produce orange juice so the firms(Tropicana) will buy from the market
for resources or the factor market
it'll then make the orange juice and then sell to the product market
also known as the market for goods
and then the
market for goods
will sell it's orange juice
to the households
and the cycle will repeat itself