Which scenario illustrates the double coincidence of wants?

• A. A trader trades apples for oranges and the orange seller wants apples.
• B. A trader wants to trade apples for a tool but the tool owner does not want apples.
• C. Money is used to buy goods in a market.
• D. The government issues a new currency.

Answer: (B)

Double coincidence of wants happens when two people each desire what the other has, so they can trade directly without needing money. In the apples-for-oranges scenario, both sides want what the other has: the orange seller wants apples and the apple trader wants oranges, so a direct barter can occur. In the tool scenario, only one side wants the other’s item—the tool owner doesn’t want apples—so there isn’t the mutual desire that makes barter possible. Money-based situations show a different mechanism, where a common medium of exchange removes the need for both parties to want each other’s specific good. So the illustration of double coincidence of wants is the mutual-desire case where each party values the other’s good.