Question

explain the problem of double coincidence of wants forced under barter system how has money solved it ?​

Answer 1

Explanation:

Money solves the problem of double coincidence of wants by acting as a medium of exchange. Double coincidence of wants implies a situation where two parties agree to sell and buy each other’s commodities., i.e., what one party desires to sell is exactly what the other party wishes to buy. Money does away with this tedious and complex situation by acting as a medium of exchange that can be used for one and all commodities. For example, if an ice-cream vendor wants a bicycle but the bicycle manufacturer wants clothes, and not ice-creams, then the vendor can use money to obtain a bicycle. He does need to adhere to the bicycle man’s needs because money acts as the common medium of exchange. Similarly, the bicycle manufacturer can then use the money to buy clothes.

Answer 2

Explanation:

double coincidence of watts means that a person wishes to sell what the other wishes to buy. this is an essential feature of barter system. but this happens very less often. money has solved this problem by being a medium of exchange.