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There are four goods produced in an economy by four individuals:
Good Producer
Apples Orchard Owner
Bread Baker
Shoes Cobbler
100 Apples = 1 Pair of Shoes
15 Apples = 1 Loaf of Bread
a. This problem is an exercise that covers the challenges of a barter economy in a 3 product environment. What would be the production and exchange process be that would result in the Orchard Owner owning two pairs of shoes and 7 loafs of bread. If the Orchard Owner was able to produce these apples, what would the outcome be for the Cobbler and the Baker?
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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