In a simple economy of five producers and five consumers, there would be ____ transactions possible without an intermediary and ____ transactions possible with one intermediary.

Question

Quizplus · Accepted Answer

Without an intermediary, each producer can transact with each consumer, resulting in 5 producers x 5 consumers = 25 transactions. With one intermediary, each producer and each consumer only needs to transact with the intermediary, resulting in 5 producers + 5 consumers = 10 transactions.

In a Simple Economy of Five Producers and Five Consumers