The Concept of Double Coincidence of Wants Refers to the Fact

question 58

Multiple Choice

The concept of double coincidence of wants refers to the fact that:

• A) for a financial asset to be exchanged, it needs to be priced correctly.
• B) for barter to take place, both parties must accept what the other party has to offer.
• C) people can never exactly agree on an equilibrium price.
• D) different people value goods differently.
• E) for barter to take place, both parties must have equal quantities of the same good.

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Definitions:

Elastic

Elastic refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Price Elasticity

Price elasticity refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Demand Schedule

A chart displaying the amounts of a product or service that buyers are ready and capable of purchasing at different price levels.

Relatively Inelastic

Describes a situation where the quantity demanded or supplied changes by a smaller percentage than the percentage change in price.