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When people meet to exchange one type of good for another, they both must want what the other is offering in exchange. Let's say that I have six chickens, and you have three sacks of flour. I really need and want your three sacks of flour, but you do not have a need for six chickens. You want two chickens, and a bushel of apples. This exchange would not be successful because we do not have an equal offering of our wants and needs.
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∙ 15y ago
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What is the difference between barter system and double coincidence of wants?
The double coincidence of wants is one of the major part of the Barter System.The two basic terms actually don't have any specific difference.
Double coincidence of demand?
For example; the supplier of good A wants good B and the supplier of good B wants good A.
What conditions must prevail for barter to take place?
poor economics development,limited exchange and low production are 3 factors needed fr barter
How can money overcome the double coincidence of wants?
When you are saving money to buy something you want, you are trying to work really hard just to get that money to buy it with; however if you have the money but you decide not to buy that item, that it how you get over the coincidence of what you want.
Barter is limited in that?
There must be a dual coincidence of wants.
What is the problem with the barter system?
Demerits of the barter system include the lack of common unit value and lack of system for storage of value or purchasing power. It is inefficient and has a lack of double coincidence of wants.
Which is the main problem with the barter system of exchange?
A double coincidence of wants meaning both parties wish to exchange what each other needs.
What is trade by barter?
Trade by barter is a system of trade whereby commodities are exchanged or traded upon without the use of medium of exchange i.e money. it is cumbersome as it entails double coincidence of wants.
What is the problem money solves?
Money solves a lack of double coincidence of want,
Does money function as a medium of exchange by eliminating the need for a coincidence of wants?
It can be used to compare the value of different products.
A sentence with coincidence?
It was quite a coincidence!
Is there a biblical meaning behind seeing double and triple numbers?
There is not a Biblical meaning behind seeing double and triple numbers. Although it may not feel like it, it is just a coincidence.
