Coconut Island (Day 1)

Imagine that you’ve decided to take a trip to a place called Coconut Island.

On Coconut Island, people buy and sell coconuts every day using money. In fact, all of the money on the island is used to buy and sell coconuts.

As you’re traveling to Coconut Island, you read in the Coconut Gazette (the island newspaper) that there was $100 and 100 coconuts on the island yesterday. So, the price of each coconut yesterday was $1.00.

But what the islanders don’t know is that you are bringing $20 to Coconut Island.

After a long trip, you finally arrive on Coconut Island. With your arrival, and the arrival of your $20, there is now $120 on the island. However, the number of coconuts on the island is still 100 (the same as yesterday).

What’s going to happen to the coconut price today? Move the sliders below to see what happens when the amount of money on the island increases to $120 and the number of coconuts stays the same at 100. After you’ve moved the sliders to their correct positions, select “Submit Answer” to see if you’ve got it right.