How does money eliminate double coincidence of wants
Answers
people don't have to search for the person in need of that thing which he is selling. money became a common object to share between people in return of any object for sale
ANSWER:
Money eliminates this complex and tedious situation by representing an exchange medium which can be utilised for all commodities.
‘Double Coincidence of Wants’ is an important aspect of the barter system, wherein commodities are exchanged with each other without using money. Nevertheless, in an economy utilising money as an exchange medium, it does away with this by offering the essential intermediary step.
EXPLANATION:
Money resolves the issue of double coincidence of wants by representing an exchange medium. Double coincidence of wants entails a situation where 2 parties are willing to sell and purchase each other’s products i.e. what one party want to sell is precisely what the other party wants to purchase.
Money eliminates this complex and tedious situation by representing an exchange medium which can be utilised for all commodities. For instance, if a book seller vendor wants clothes but the clothes seller prefers ice-creams and not books, then the clothes seller can use the money given by the book seller to buy ice-cream and the book seller can use money to buy clothes.
The clothes seller need not adhere to the book seller’s needs since money represents the exchange medium here.