ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Goods are directly exchanged without the use of money. For example, a person has rice but he is in need of wheat and other who has wheat but he is in need of rice. Then they will exchange their goods. This exchange is known as double coincidence of wants.

Detailed explanation-2: -In a barter economy, an exchange between two people requires a double coincidence of wants, which means that what one person wants to buy is exactly what the other person wants to sell.

Detailed explanation-3: -The double coincidence of wants mean that both the parties have to agree to sell and buy each other’s commodity i.e. what a person desires to sell is exactly what the other person wishes to buy. In earlier times when there was no currency, people were dependent on barter system(exchange of goods for goods).

Detailed explanation-4: -Answers. Yes almost, as barter system means exchange of goods for trading & double coincidence of wants is one of the feature of b.s. which refers to a situation wherein what a person wishes to sell is exactly the same as that the other person wishes to buy.

Detailed explanation-5: -The problem of double coincidence of wants arises when there is no medium of exchange. In such a case the buyer has to make a search for the seller who also wants to buy the same good which the buyers itself offers for exchange. Money has solved the problem by working as a medium of exchange.