Asked by Cardian Williams on May 26, 2024
Verified
Sam wants to trade eggs for sausage. Sally wants to trade sausage for eggs. Sam and Sally have a double-coincidence of wants.
Double-Coincidence
The situation in a barter economy where two parties each hold an item the other wants, enabling an exact exchange without the need for a medium of exchange.
- Comprehend the constraints and drawbacks of barter systems, particularly the necessity for a mutual coincidence of needs.
Verified Answer
HG
Harsha GidwaniMay 30, 2024
Final Answer :
True
Explanation :
A double-coincidence of wants occurs when two parties each hold an item the other wants, making a direct exchange possible without the need for a medium of exchange, like money. Since Sam wants what Sally has (sausage) and Sally wants what Sam has (eggs), their situation perfectly fits this definition.
Learning Objectives
- Comprehend the constraints and drawbacks of barter systems, particularly the necessity for a mutual coincidence of needs.