Which of the following statements best describes the double coincidence of wants?

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A person must have double the amount of money.

A person must demand more and more goods.

Two individuals must agree to sell and buy each other's commodities.

None of the above

answer is C.

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Detailed Solution

Two individuals must agree to sell and buy each other's commodity; the following statements best describe the double coincidence of wants.
In the barter exchange system, people used to buy the products of their choice by exchanging them for the seller's goods. However, a double coincidence of wants means that both parties should have an option to purchase the product of their choice and be willing to exchange them. Sometimes, it results in compromise by one of them and satisfaction by the other, which means that both parties were not equally treated. As a result, money was introduced to cover this issue.

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