question_answer

'Problem of lack of double coincidence of wants exists in barter exchange'. Explain.

Answer:

Lack of double coincidence of wants under barter exchange.

'Simultaneous fulfilment of mutual wants by buyers and sellers' is known as double coincidence of wants. In barter exchange, this is lacking, e.g., the producer of wheat may want shoes in exchange for his wheat. But he may find it difficult to get a shoemaker who is also willing to exchange his shoes for jute. Thus a seller has to find out a person who wants to buy seller's good and the same time who must have what the seller wants. This is the main drawback of barter exchange.