Now suppose that, in the last couple of days of trading, after the students have started using money for most trades (see Question 4 above), the instructor plays the role of a merchant, in order to make a point. She announces that she is willing to trade pencil erasers for calculators (or vice-versa), directly, at a rate of eight pencil erasers per calculator. Explain, carefully and completely, how a student could use the instructor-merchant's willingness to trade these goods at this rate to make a profit of one eraser (or nine M&Ms, which is the market value of one eraser). The student's trading strategy should involve [1] using money to buy one of the goods in the market, [2] trading that good to the merchant in exchange for the other good, and [3] selling enough of the other good in the market, for money, to cover the cost of the initial purchase. Identify the items traded and the quantities, and verify the amount of the profit. Finally, explain what the student would need to do in order to make a larger profit: twice as large, for example. Hint: Given the way the instructor-merchant values pencil erasers and calculators, compared to their market valuation, which good will the student want to trade to him in exchange for the other good? The student will want to start by buying the other good with money. And she can buy more than one unit of that good