Question

How money solve the problem of barter system and double coincidence want? ​

Answer 1

Answer:

This occurs when two people have goods they are both happy to swap in exchange. i.e. a perfect barter exchange. If you two individuals place equal value on 4 eggs and a loaf of bread. Then this exchange would be a double coincidence of wants and enable an efficient transaction.

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Answer 2

Answer:

Explanation:

In barter system where goods are directly exchanged without the use of money, double coincidence of wants is an important factor. By serving as a medium of exchange, money removes the difficulties related with barter system and the need for the double coincidence of wants. In this way, the use of money makes it easier to exchange things.