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2 Consider an economy with three goods and three types of people distinguished by what they are able to produce and what they are willing
2 Consider an economy with three goods and three types of people distinguished by what they are able to produce and what they are willing to consume. Figure 1 illustrates the three types. TYPE I Consumes 1, Produces 2 TYPE II TYPE III Consumes 2, Consumes 3, Produces 3 Produces 1 Figure 1: An absence of double coincidence economy. (a) List the bilateral meetings between different types that lead to transactions with barter. [5] (b) List the bilateral meetings between different types that lead to transactions when good 1 is a commodity money. [5] (c) List the bilateral meetings between different types that lead to transactions when there is fiat money. [5] (d) List the bilateral meetings between different types that lead to transactions when there is perfect record keeping. [5]
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