Coincidence of Wants
Coincidence of wants is an economic term that refers to the simultaneous availability of a buyer and seller for a particular good or service. It is a necessary condition for a successful transaction to take place. In other words, both parties must have what the other wants in order for a trade to occur. Without coincidence of wants, a transaction cannot take place.
History of Coincidence of Wants
The concept of coincidence of wants was first introduced by Adam Smith in his book The Wealth of Nations. Smith argued that the division of labor and specialization of production were the main drivers of economic growth. He also argued that the exchange of goods and services was only possible when both parties had what the other wanted. This concept has since been used to explain the functioning of markets and the importance of trade.
Table of Comparisons
| Condition | Result |
|---|---|
| Coincidence of Wants | Successful Transaction |
| No Coincidence of Wants | No Transaction |
Summary
In summary, coincidence of wants is an economic term that refers to the simultaneous availability of a buyer and seller for a particular good or service. It is a necessary condition for a successful transaction to take place. For more information about this term, you can visit websites such as Investopedia, The Balance, and Khan Academy.
See Also
- Division of Labor
- Specialization of Production
- Exchange of Goods and Services
- Markets
- Trade
- Supply and Demand
- Price Elasticity of Demand
- Opportunity Cost
- Marginal Analysis
- Utility Maximization
