Which of the following best illustrates the double coincidence of wants?
A)Both Tom and Jerry would like to purchase the same good.
B)Tom has something he's willing to trade to Jerry; Jerry has something he's willing to trade to Tom.
C)Tom and Jerry have very similar tastes; hence,Tom's wants coincide with Jerry's.
D)Tom has something he's willing to trade to Jerry,who wants it; Jerry has something he's willing to trade to Tom,who wants it.
E)Tom has something Jerry wants; Jerry has something Tom wants.

Question

Quizplus · Accepted Answer

The double coincidence of wants refers to the situation where two traders have goods or services that each desires, which allows for a mutually beneficial trade. Option D best represents this situation where Tom has something that Jerry wants and Jerry has something Tom wants, leading to a potential trade. Option A only mentions both parties wanting the same good, but doesn't address whether they have goods to trade. Option B mentions willingness to trade, but doesn't specify if there is a coincidence of wants. Option C mentions similar tastes but doesn't indicate whether there is something to trade. Option E only addresses one-way desires and doesn't address whether there is a coincidence of wants.

Which of the Following Best Illustrates the Double Coincidence of Wants