Question

How does money solve the problem of double coincidence of wants? Explain with example of your own.

Answer 1

Money can be exchangrd for any kind of commodity of one's choice or need.It becomes easier to buy and sell goods Nd services with money to make transactions.
In a barter system,commodities are directly exchanged with commodities without the use of money.But in such a system,two parties are required who are ready to sell Nd buy each other's commodities.This is called double coincidence of wants. With the help of money one buy a commodity of his choice whatever he so desires.He need not wait for the other person to agree to exchange his goods with his own goods.

Answer 2

Explanation:

Double coincidence of wants is an essential feature in a barter system where goods are directly exchanged without the use of money. But on other hand in an economy where money is in use, money by providing the crucial intermediate step eliminates the need for double coincidence of wants. A person holding money can easily exchange it for any commodity or service that he or she might want.

For example: It is no longer necessary for the shoemaker to look for a farmer who will buy this shoes and at the same time sell him rice. All he has to do is find a buyer for his shoes. Once he has exchanged his shoes for money he can purchase rice or any commodity in the market

1. hope its help you