The option that best demonstrates the way consumers and producers influence each other in the free-market system is the circular-flow model.
The circular-flow model illustrates how money and goods move between consumers and producers, highlighting their interdependence. Consumers purchase goods and services from producers, and in return, producers receive revenue that they can use to pay for resources, which in turn allows them to produce more goods and services. This continuous flow showcases the relationship between supply and demand in a free market.
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