Question

How does money solve double coincidence of wants

Answer 1

$\huge\underline{\overline{\mid{\bold{\red{ANSWER-}}\mid}}}$

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.

__________________

Answer 2

${\huge {\overbrace {\underbrace {\red{answer}}}}}$

Double Coincidence of Wants is an essential feature in a barter system, where goods are directly exchanged without the use of money. However, in an economy using money as a medium of exchange, eliminates this by providing the crucial intermediate step.

For example, it is not necessary for a shoemaker to look for a farmer who will buy shoes made by him and at the same time, sell rice to him. All he has to do is to find a buyer for his shoes, who will pay him money for them.

With this money he can purchase rice or any other commodity available in the market.

$\color{red}{hope}$$\color{red}{it}$$\color{red}{helps}$

‌$\color{red}{please}$$\color{red}{mark}$$\color{red}{it}$$\color{red}{as}$$\color{red}{a}$$\color{red}{brainliest}$