The greater the number of different goods available in an economy,the:
A)less likely it is that a double coincidence of wants will exist,and the less likely it is that monetary exchange will develop.
B)less likely it is that a double coincidence of wants will exist,and the more likely it is that monetary exchange will develop.
C)more likely it is that a double coincidence of wants will exist,and the less likely it is that monetary exchange will develop.
D)more likely it is that a double coincidence of wants will exist,and the more likely it is that monetary exchange will develop.
E)more likely it is that individuals are producing only goods they want to consume.

Question

Quizplus · Accepted Answer

A double coincidence of wants refers to the situation where two parties are willing to exchange goods that the other wants. The greater the number of different goods available in an economy, the less likely it is that two parties will have a double coincidence of wants because there are more options to choose from. Therefore, it is more likely that monetary exchange will develop as a means of facilitating transactions.

The Greater the Number of Different Goods Available in an Economy,the