Panic set in. Leo raised his price to V$20 to match the Seashire value (V$20 = S$2, still not S$8, but closer). His neighbors grumbled. “We can’t afford bread anymore!”

Leo scratched his head. “So my loaf is cheap for them?”

“Exactly,” Mira said. “Seashire merchants will buy all your bread, ship it there, and sell it for S$8. You’ll run out of bread for your own neighbors.”

He realized: the number on the coin didn’t matter. What mattered was —the idea that a loaf should give the same satisfaction in both countries.

One day, Mira the merchant returned from Seashire. “Leo!” she cried. “In Seashire, a similar loaf sells for 8 Sea coins (S$). But listen—our currency is weak. Right now, V$1 equals only S$0.10. That means your V$5 loaf is worth just S$0.50 there!”

The Baker and the Baker’s Dilemma

Pppe 150 -

Panic set in. Leo raised his price to V$20 to match the Seashire value (V$20 = S$2, still not S$8, but closer). His neighbors grumbled. “We can’t afford bread anymore!”

Leo scratched his head. “So my loaf is cheap for them?” pppe 150

“Exactly,” Mira said. “Seashire merchants will buy all your bread, ship it there, and sell it for S$8. You’ll run out of bread for your own neighbors.” Panic set in

He realized: the number on the coin didn’t matter. What mattered was —the idea that a loaf should give the same satisfaction in both countries. “We can’t afford bread anymore

One day, Mira the merchant returned from Seashire. “Leo!” she cried. “In Seashire, a similar loaf sells for 8 Sea coins (S$). But listen—our currency is weak. Right now, V$1 equals only S$0.10. That means your V$5 loaf is worth just S$0.50 there!”

The Baker and the Baker’s Dilemma