Question

What is meant by ‘lack of double coincidence of wants’ in the barter system?

Options

• Both parties value their goods equally

• Both traders must want what the other offers

• Goods have a fixed market price

• Money is used for settling debts

Answer 1

Both traders must want what the other offers

Explanation:

Barter requires each person to want exactly what the other is offering, which is often difficult to find.