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What is double coincidence of wants ? |
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Answer» If both the parties agree to buy and sell each other\'s commodities respectively then it is known as double coincidence of wants. A shoe manufacturer wants to sell shoes in the market and buy wheat. The shoe manufacturerwill first exchange shoes that he had produced for money, and then exchange the money for wheat. Imagine how difficult it would be if the shoe manufacturer had to directly exchange shoes for wheat without using money. He would have to look for a wheat growing farmer, who not only wants to sell wheat but also wants to buy the shoes in exchange. That is, both parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. 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. |
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