Andy can't make a deal with Danny. Andy has a Alex Rodriguez baseball card and would like to trade it to Danny for Danny's Albert Pujols card, but Danny doesn't want a Alex Rodriquez card. Andy's problem illustrates the drawback to a barter system known as
A)the specialization problem.
B)the double coincidence of wants problem.
C)the many prices problem.
D)the transactions problem.

Question

Quizplus · Accepted Answer

The double coincidence of wants problem refers to the situation where two parties need to have exactly what the other wants in order to make a trade. In this case, Andy wants Pujols' card and has A-Rod's card, but Danny doesn't want A-Rod's card. This lack of coincidence of wants makes it difficult for the two parties to engage in a barter exchange.

Andy Can't Make a Deal with Danny