Voluntary exchange will occur when:

Question

Quizplus · Accepted Answer

Voluntary exchange occurs when all individuals involved in the exchange benefit. This means that both parties perceive a gain from the exchange, otherwise they would not engage in the transaction voluntarily. If only one person benefited, it would not be a mutually beneficial exchange. Additionally, access to information and lack of alternatives may impact the exchange, but they are not the defining characteristic of a voluntary exchange as defined in economics.

Voluntary Exchange Will Occur When