Econ: Come and Challenge !!!?

Question

How many prices would there be in a barter economy with 8 goods?

A)40
B)56
C)64
D)28
E)None of the above

Can anybody show me how to do this? thanks

the answer is 28

thanks

Answer 1

B - 56.

With 8 goods in a barter economy, there would be 7 prices for each good (how many B's for one A, how many C's for one A, how many D's for one A, etc). Each good will have a separate price relative to the 7 other goods.

With 7 prices for each good, and 8 goods, there will be 56 total prices.

Hope that helps.

Answer 2

As explained in the previous answer there will be 7 prices each for each of 8 goods giving 56. but I think that the "price" of the exchange ratio of A for B and B for A is the same "price" and should be counted only once so I would say 56/2=28

Answer 3

56 because 8 into 7 and not 8 into 8. Each good has seven prices in the form of exchange.

Answer 4

I thought 56 initially too, but Meg got me thinking. It is a bit of a trick question and depends on whether you believe that 1 apple = 2 pears is the same as 1 pear is 1/2 apple. I think 28 is the right answer.