Answer:
It shows the relationship between supply and demand. It indicates the changing tastes in the product market.
Explanation:
The purpose of a circular flow of goods and resources is to show how goods move in the society and money change hands.
It should be noted that circular flow simply means a model that shows the exchange of goods and flow of money.
In this case, the purpose of a circular flow of goods and resources is to show how goods move in the society and money change hands.
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