If there are five goods in a barter economy,one needs to know ten prices in order to exchange one good for another. If,however,there are ten goods in a barter economy,then one needs to know ________ prices in order to exchange one good for another.
A)20
B)25
C)30
D)45

Question

Quizplus · Accepted Answer

In a barter economy, the number of prices needed to exchange one good for another without using money is determined by the formula n(n-1)/2, where n is the number of goods. For ten goods, this is 10(10-1)/2 = 45.

If There Are Five Goods in a Barter Economy,one Needs