Question

What is double coincidence of wants?

Answer 1

The occurrence when the wants of buyers and sellers both get fulfilled simultaneously in the process of exchange of mutually possessed goods is known as double coincidence of wants. Both parties, the seller and buyers have to agree to sell and buy each others commodities. 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.