Question

# in a barter economy, prices are stated in terms of relative prices. how many relative prices are in a barter economy where the only goods are oranges, rafts, and flower necklaces?

Answer

There are 3 relative prices in a barter economy where the only goods are oranges, rafts, and flower necklaces. Each good has a relative price with respect to the other two.

- Recognize the problem and available information.
- Identify the formula to solve the problem.
- Solve for the number of relative prices.