Q5 of 38 Page 1

Identify the condition when both the parties in a barter economy have to agree to sell and buy each other’s commodities? What is it called?

The situation mentioned in case of a barter economy is called Double Coincidence of Wants.


NOTE - Money is the standard of almost every transaction in the 20th century. However, before the use of money, people used to engage in the double coincidence of wants wherein they used to buy and sell in terms of commodities such as giving of rice in return for shoes. But this practice always required a coincidence in the needs of both the parties.


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