Question

When both the parties agree to exchange each other's goods _____________ happens.

Answer 1

Transaction.
That point can be termed as an equilibrium point.

Answer 2

When both the parties agree to exchange each other's goods a market exchange happens.

• What happens at any time two or more individuals trade products or services is a marketing exchange.

• Any transaction is expected to create utility in marketing theory, which means that the value of what is sold is less than the value of what is obtained from the sale.

• For example, someone visiting a coffee shop, can have enough money to purchase a cup of coffee while the coffee is in the cafe. Both sides need to be able to connect with each other, and each have something to offer to be able to do so.