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One of the most common explanations for the function of a currency is that it serves as a means of payment for products and services, and thereby gives people a bargaining position against their sellers. For example, if the dollar buys my widget for $1.00, and you need to buy something from me, then I can ask how much you are willing to pay me to get the widget. (Remember that YOU are in a position of power here). If you are not willing to pay more than $1.00, then the widget works as my currency. But if you are willing to pay $1.25, then$1.25 turns out to be the function of the dollar. Now we can use logic, and just about any carry-over or trick we have learned in this course, to show you how to find the dollar's function for a currency.
NEW: While this technique is not necessarily the case in all countries, products generallyare sold at a fixed price by merchants in the US. In a free or private market, the product is sold at the lowest price the customer is willing to pay, without discounts or subsidies. If we know the price at which the product is sold, we can then look up the prices on all the stores in a particular area, and deduct from those the total cash sales made on that product. The result is typically a sales number for that product. When we know that the cash sales of a product is equal to the number of units sold times the retail price per unit, then we know that the function of a currency is its retail price per unit.
In area of a square we will learn how to find the area by counting squares. To find the area of a region of a closed plane figure, we draw the figure on a centimeter squared paper and then count the number of squares enclosed by the figure. We know, that square is d2c66b5586