Hey peeps ! What is double coincidence of wants?
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Double coincidence of wants occurs when two individuals swap their goods, in exchange for one another. This is also referred to as the 'perfect barter exchange'. In such cases, both the individuals are happy to exchange their good or commodities.
For example, if two individuals want to exchange and place on a loaf of bread and a bag of apples, then this is known as double coincidence of wants. This results in an efficient transaction between the two individuals.
These types of transactions were practised during the barter economy system (cashless system), where two people had to swap each other's goods or commodities in exchange for one another. This type of system had its own limitations and drawbacks. One of the main limitations was that two people should have goods that they're willing to exchange.
For example, a loaf of bread cannot be exchanged for a bicycle because it would be no good. Then, there is no double coincidence of wants. However, if you can swap a loaf of bread for a bag of apples, then it satisfies the double coincidence of wants.
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