Which of the following best explains why the circular flow model
characterizes the free-market system?
o
a. production decisions follow the cycles of nature.
b. consumers and producers influence each other in a circular
fashion.
o
c. profits flow in a circular way back and forth between different
producers.
o
d. producers recycle products discarded by producers.
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The answer is B. The circular model illustrate the flow of income and expenditure, and expresses how change by with consumers or producer can influence the other. If consumers were spending less, then producers would lower their production to match the consumer demand for that good or service.

Horizontal asymptote at  tells us that the original graph has been translated down.since  ,  are positive.  also we can say that the point  has a smaller  -coordinate than  .this means that the  transformed exponential function is increasing as it goes to the right. as it goes from  to , the value of the exponential function increases. it goes from to something bigger, . therefore, as  . the left hand would be the side that approaches the horizontal asymptote.so the answer is d