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Solving 2 questions

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We all need to buy goods. Sometimes those goods are groceries, while other times those goods are clothing for an important event. Whatever the goods might be, purchasing them forms a crucial piece in a functioning economy.

Simply put, each time we buy a good we are contributing to the economy. You see, the economy works in a circular motion known as the circular flow diagram in economics.

The circular flow diagram is a basic model used in economics to show how an economy functions. Primarily, it looks at the way money, goods, and services move throughout the economy. In the diagram, there are two main characters, known as firms and households, where households represent consumers and firms represent producers.



Quest Specialty Travel is a tour company in San Diego, California, that organizes adventure, cultural, and educational tours. Quest travelers enjoy activities ranging from hiking to hang-gliding while becoming familiar with the culture of the region—the food, the people, and the history.

Quest sponsors tours to five regions of the world: Africa, the Americas, Asia, Europe, and Oceania (including Australia and New Zealand). Customers are usually traveling for pleasure, though Quest occasionally organizes business trips.

Problem: Typically, the late spring and summer months are the most popular times for personal travel. For the last five years, the top sales months have been April-August. This year, however, sales did not increase during these months. For the first time in five years, Quest annual sales are declining—they now expect to make less this year than last year.

List the all steps you would take to analyze this problem

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