Question

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How does money solve the problem of double coincidence? Explain with example

Answer 1

hey dear......!!!

The ' double coincidence of wants ' means both parties, the buyer and seller have to agree to sell and buy each other's commodities.
EXAMPLE :
Take the case of shoe manufacture. he wants to sell shoes in market, and buyer wheat. The shoe manufacture will first exchange shoes that he has produced for money, and then exchange the money for wheat.

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hope it's help you if you like the answer mark as a brain list dear.....!!

Answer 2

hi
when both the parties have to agree to sell and buy each other's commodities this is known as double coincidence of wants.Take the case of a shoe manufacturer .He wants to sell shoes in the market and buy wheat .If the manufacturer had to directly exchange shoes for wheat without the use of money he would have to look for a wheat growing farmer who not only wants to buy the shoes in exchange.

Hope it helps you:)
#Sanika Khurana