Final answer:
Inseparability means that buyers and producers of services must be in direct contact for an exchange to take place, as services are intangible and require the provider's presence.
Step-by-step explanation:
The term "inseparability" in the context of services refers to the fact that buyers and producers of services must be in direct contact for an exchange to take place. Unlike physical goods, services are intangible and often require the provider to be physically present to deliver the value to the consumer. Examples of services include haircuts, insurance, dental visits, and banking services. These offerings cannot be separated from the service providers, and there's an immediate consumption of the service as it is produced, which defines the inseparability characteristic of services.