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Question
How do double coincidence of wants arise?
Solution
Both parties have to agree to sell and buy each others commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature.
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RELATED QUESTIONS
Name the system in which the double coincidence of wants is an essential feature.
Which among these is an essential feature of barter system?
System of exchanging goods for goods is called ______.
Money ______.
When both parties agree to sell and buy each others commodities it is known as ______.
Banks mediate between those who have surplus funds and those ______.
''The use of money spans a very large part of our everyday life." Support the statement with example.
Rahul has a sack of cotton but he is in need of wheat and Anush has a sack of wheat and is in need of cotton, under this situation both will be able to exchange their goods. In case of absence of such coincidence of wants, they may not exchange their goods.
Which one of the following would be the best option that describes the mutual exchange of goods and eliminate the exchange of goods?
