Question
There are four goods produced in an economy by four individuals: Good Producer Apples Orchard Owner Bread Baker Shoes Cobbler 105 Apples = 1 Pair
There are four goods produced in an economy by four individuals: Good Producer
Apples Orchard Owner
Bread Baker
Shoes Cobbler
105 Apples = 1 Pair of Shoes
15 Apples = 1 Loaf of Bread
- What is the exchange rate between shoes and bread (how many loaves of bread are needed to purchase pair of shoes?
- If a Hat maker entered the market and 1 Pair of Shoes = 2 Hats, how many apples would need to be produced to insure that all producers had at least one hat?
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International Money and Finance
Authors: Michael Melvin, Stefan C. Norrbin
8th edition
978-8131234136, 123852471, 978-0123852472
