The solution to the problem of double coincidence of wants requires a buyer and seller whose demands are precisely?
Answer Details
The solution to the problem of double coincidence of wants requires a buyer and seller whose demands are complementary.
The double coincidence of wants is a problem that arises in barter economies where there is no commonly accepted medium of exchange. It refers to the situation where a buyer wants to purchase a good from a seller, but the seller does not want the goods or services that the buyer has to offer in exchange. In this situation, trade cannot take place.
The solution to the problem of double coincidence of wants is to find a medium of exchange that is widely accepted, such as money. Alternatively, the demands of the buyer and seller can be complementary, which means that what one wants to sell is exactly what the other wants to buy. For example, if a baker wants to buy flour and a farmer wants to buy bread, their demands are complementary, and they can trade with each other without the need for money.
The other options are not the correct answers because they do not address the issue of complementary demands, which is the key to solving the problem of double coincidence of wants. Competitive demands are those that compete with each other, such as two buyers bidding for the same item. Composite demands refer to goods that are made up of several components, such as a computer. Supplementary demands refer to goods that are used together, such as a car and gasoline.