ABSTRACT

A trader trudges to the next village to sell his bushel of apples. His price-a bushel of bananas. When he arrives, he discovers that no one is trading bananas---{)nly oranges are available for the exchange. Confident that he can trade each orange for a banana in his own village, he sells his apples for a bushel of oranges. When he returns home, there are others who have had the same notion and the market is full of oranges. The best going rate now is two oranges for one banana. Much to his dismay, he figures he has lost 50 percent of his anticipated return when nothing else has changed-neither his price nor his product. For the modern trader, the reality is similar.