Which of the following statements accurately describe the relationship between product markets and factor markets? Select all that apply.

Product markets and factor markets are closely related parts of the economy. In product markets, businesses sell goods and services to consumers, while in factor markets, they buy the resources needed to produce those goods and services, such as labor, land, and capital. For example, when a company produces bicycles, it hires workers (in the factor market) to assemble them and then sells those bicycles (in the product market) to customers. This connection shows how the demand for products influences the demand for factors of production, as more sales often lead to more hiring and resource use. Understanding this relationship helps us see how changes in one market can impact the other.