Single Answer MCQ
Q-00015851
Why is a double coincidence of wants necessary in a barter system?
1
Both parties need to sell their items simultaneously.
2
Each party must want what the other is selling.
3
Barter does not use any medium of exchange.
4
It ensures that services exchanged are equally valued.
Answer and Solution
Answer
B. Each party must want what the other is selling.
Solution:
In a barter system, a double coincidence of wants is necessary because both parties must want each other's goods or services for a trade to occur.
Watch Video Solution