Which of the following is an example of barter where the double coincidence of wants may not always occur?
A) An individual uses tobacco to buy everything,and tobacco is an item that all merchants willingly accept.
B) An individual uses fiat money to buy everything,and fiat money is an item all merchants willingly accept.
C) An individual wants to buy a new set of tires using seashells from a merchant who needs seashells,and not all merchants accept seashells.
D) All merchants price goods in terms of number of seashells.
E) All merchants price goods in terms of amount of fiat money.

Question

Quizplus · Accepted Answer

In this scenario, there is a mismatch between the wants of the individual and the acceptability of the medium of exchange (seashells) by all merchants. Not all merchants may be willing to accept seashells as a means of exchange, which can make the barter difficult. The other options involve a widely accepted medium of exchange, either tobacco or fiat money, which eliminates the need for double coincidence of wants.

Which of the Following Is an Example of Barter Where