william gregg owned a mill in south carolina. in december 1862, he placed a notice in the edgehill…

william gregg owned a mill in south carolina. in december 1862, he placed a notice in the edgehill advertiser announcing his willingness to exchange cloth for food and other items. here is an extract: 1 yard of cloth for 1 pound of bacon; 2 yards of cloth for 1 pound of butter; 4 yards of cloth for 1 pound of wool; 8 yards of cloth for 1 bushel of salt. calculate the relative price of 1 pound of bacon in terms of pounds of butter. if the price of butter is $0.30 a pound, what do you predict is the money - price of a pound of wool? >>> answer to 2 decimal places. the relative price of 1 pound of bacon is pounds of butter. if the price of butter is $0.30 a pound, you would predict that the price of a pound of wool is $. if the money price of bacon was 20¢ a pound and the money price of salt was $2.00 a bushel, people ____ buy bacon and trade it for cloth because ____. a. would not; the relative price of 1 bushel of salt is only 1/8 yard of cloth. b. would not; they would have to buy 8 yards of cloth for $1.60 and then give mr. gregg an extra $0.40 to buy a bushel of salt. c. would; they could trade the cloth for salt, which is even more important for life than either bacon or cloth. d. would; they could buy 8 yards of cloth for only $1.60, and use that cloth to obtain a bushel of salt.

william gregg owned a mill in south carolina. in december 1862, he placed a notice in the edgehill advertiser announcing his willingness to exchange cloth for food and other items. here is an extract: 1 yard of cloth for 1 pound of bacon; 2 yards of cloth for 1 pound of butter; 4 yards of cloth for 1 pound of wool; 8 yards of cloth for 1 bushel of salt. calculate the relative price of 1 pound of bacon in terms of pounds of butter. if the price of butter is $0.30 a pound, what do you predict is the money - price of a pound of wool? >>> answer to 2 decimal places. the relative price of 1 pound of bacon is pounds of butter. if the price of butter is $0.30 a pound, you would predict that the price of a pound of wool is $. if the money price of bacon was 20¢ a pound and the money price of salt was $2.00 a bushel, people ____ buy bacon and trade it for cloth because ____. a. would not; the relative price of 1 bushel of salt is only 1/8 yard of cloth. b. would not; they would have to buy 8 yards of cloth for $1.60 and then give mr. gregg an extra $0.40 to buy a bushel of salt. c. would; they could trade the cloth for salt, which is even more important for life than either bacon or cloth. d. would; they could buy 8 yards of cloth for only $1.60, and use that cloth to obtain a bushel of salt.

Answer

Explanation:

Step1: Find relative - price of bacon in terms of butter

We know that 1 yard of cloth for 1 pound of bacon and 2 yards of cloth for 1 pound of butter. So, if 1 yard of cloth = 1 pound of bacon and 2 yards of cloth = 1 pound of butter, then 1 pound of bacon = 0.5 pounds of butter.

Step2: Find money - price of wool

Since 4 yards of cloth for 1 pound of wool and 2 yards of cloth for 1 pound of butter with butter price $0.30 per pound. If 2 yards of cloth cost $0.30, then 4 yards of cloth (price of 1 pound of wool) cost $0.60.

Step3: Analyze trade - off between bacon and salt

If the money price of bacon is 20 cents a pound, then 1 yard of cloth (which can be exchanged for 1 pound of bacon) costs 20 cents. 8 yards of cloth cost $1.60. And the money price of salt is $2.00 a bushel. People would not buy bacon and trade it for cloth because they would have to buy 8 yards of cloth for $1.60 and then give Mr. Gregg an extra $0.40 to buy a bushel of salt.

Answer:

The relative price of 1 pound of bacon is 0.5 pounds of butter. If the price of butter is $0.30 a pound, you would predict that the price of a pound of wool is $0.60. If the money price of bacon was 20¢ a pound and the money price of salt was $2.00 a bushel, people B. would not; they would have to buy 8 yards of cloth for $1.60 and then give Mr. Gregg an extra $0.40 to buy a bushel of salt.