Question

Identify the condition when both the parties in a barter economy have to agree to sell and buy each other's commodities? what is it called?

Answer 1

The condition when both the parties in a barter economy have to agree to sell and buy each other's commodities is known as double coincidence of wants.

The initial difficulty in barter is to find two persons whose disposable possessions suit each other's wants. It imposes severe limitations on economies which do not have a medium of exchange such as money, and rely on barter or in-kind transactions.

Answer 2

Answer:

Explanation:

The condition when both the parties in a barter economy have to agree to sell and buy each other's commodities is known as double coincidence of wants. The initial difficulty in barter is to find two persons whose disposable possessions suit each other's wants.