Andy can't make a deal with Danny.Andy has an Alex Rodriguez baseball card and would like to trade it to Danny for Danny's Albert Pujols card,but Danny doesn't want an Alex Rodriguez 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 difficulty in finding two parties who have what the other wants and are willing to trade. In this case, Andy has an item he wants to trade, but Danny does not want it, creating a mismatch in preferences and needs.

Andy Can't Make a Deal with Danny