How many different prices would there be in a barter economy with 100 goods?

Question

Quizplus · Accepted Answer

In a barter economy with 100 goods, the number of different prices would be determined by the number of unique pairs of goods that can be traded for each other. This can be calculated using the formula for combinations: C(n, 2) = n! / [2!(n-2)!], where n is the number of goods. Plugging in 100 for n gives us 100! / [2!(100-2)!] = 100*99 / 2 = 4,950. This is because each unique pair represents a potential price or trade agreement between two goods.

How Many Different Prices Would There Be in a Barter