Suppose that corn is the unit of account in a certain economy.If a pair of tennis shoes exchanges for two bushels of corn and a pair of hiking boots exchanges for twelve bushels of corn,then
A)whether or not a double coincidence of wants exists,all trades have to be made using corn
B)with one pair of tennis shoes,a person will be able to purchase twelve pairs of hiking boots
C)with one pair of tennis shoes,a person will be able to purchase six pairs of hiking boots
D)with twelve pairs of tennis shoes,a person will be able to purchase one pair of hiking boots
E)with six pairs of tennis shoes,a person will be able to purchase one pair of hiking boots

Question

Quizplus · Accepted Answer

Since one pair of tennis shoes is worth two bushels of corn, and one pair of hiking boots is worth twelve bushels of corn, it would take six pairs of tennis shoes (2 bushels each) to equal the value of one pair of hiking boots (12 bushels).

Suppose That Corn Is the Unit of Account in a Certain