Question

A double coincidence of wants refers to
A. the situation where two parties are involved in a transaction where money is the medium of exchange.
B. the idea that a barter economy is more efficient than an economy that uses money.
C. the fact that for a barter trade to take place between two​ people, each person must want what the other one has.
D. the situation in which a good that is used as money also has value independent of its use as money.

Answer 1

Answer:

C. the fact that for a barter trade to take place between two​ people, each person must want what the other one has

Explanation:

The double coincidence of wants is the foundation of barter trade and bartering economy. In order to avoid the usage of money as an exchange medium, both parties engaged in a barter must what the other one has.

If there is a discrepancy present, then a monetary medium has to be used in the exchange of goods or services.