Define double coincidence of wants.
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The coincidence of wants lacking a medium of exchange, which have to rely on barter or other in-kind transactions. Double coincidence of wants means that the both the parties have to agree to sell and buy each commodities.
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Double coincidence of wants:
- Double coincidence of wants is an economic phenomenon where two persons with products that the other person wants can exchange their items directly.
- There is no money exchanged between them. This brought in the process of barter system. Double coincidence means both the parties has agreed to sell or exchange their goods.
- But there is one major limitation when it comes to this process. One can sell his/her goods to the other person only when the buyer needs it and vice-versa. The seller and buyer is should desire what the other one wants.
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