Question

how does money solve the problem of double coincidence of wants

Answer 1

heya dear....


The problems which faced during of double coincidence...are The problem is caused by the improbability of the wants, needs, or events that cause or motivate a transaction occurring at the same time and the same place. ... Besides barter, other kinds of in-kind transactions also suffer from the coincidence of wants problem in the absence of a medium of exchange.

Answer 2

Answer:

Double coincidence of wants is an essential feature of the barter system of exchange, where goods are exchanged for goods directly. In such a case, it becomes necessary that both the sides involved in the exchange agree to buy each others commodities. This is called doubled coincidence of wants. What one person sells is exactly what the other wishes to buy. But it is a major problem in exchange since such a situation can't be created easily. Money solves this problem by acting as an intermediate medium of exchange. With money, the double coincidence of wants no longer needs to be satisfied as one can sell or buy commodities using it alone.

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