Question

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

Answer 1

Answer:

money solve the problem of double coincidence because:

explanation:

let's say ram has 4 apples and shyam has 4 bananas . shyam need 4 apples but ram didn't need 4 bananas. so shyam said ram that let's exchange this things but ram refused as he didn't need banans. if he has money he will not refuse .

Answer 2

Double coincidence of wants implies that two individuals are in possession of goods which they are willing to exchange for satisfaction of their wants. But it’s not quite simple to find such person who wants let’s say horse at the same tim3 has cow that you want to buy. Money as a medium of exchange has solved this problem