If there are four goods in a barter economy,then one needs to know ________ prices in order to exchange one good for another.
A)8
B)6
C)5
D)4

Question

Quizplus · Accepted Answer

In a barter economy with four goods, the number of unique exchange rates or prices between pairs of goods can be calculated using the formula n(n-1)/2, where n is the number of goods. For four goods, this gives 4(4-1)/2 = 6 unique prices.

If There Are Four Goods in a Barter Economy,then One