Question

What it is known as when both parties agree to sell and buy each other commodity

Answer 1

Double Coincidence of Wants

Answer 2

It is known as the double coincidence of wants.

• In this economic situation, two engaged people give consent to buy and sell each other's commodities.
• In other words, what one person wants to sell, the other wants to purchase.
• A circumstance like this is a characteristic of the barter system.
• As an example, two people may swap mobile phones and laptops. In this situation, the terms and conditions must be accepted by both parties.
• It helps to motivate fruitful economic transactions at the same place and same time.

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