MCQ
Read the information given below and select the correct option
Ram who is a pot manufacturer wants to sell pots in the market and buy rice. Ram will first exchange pots that he has produced for money, and then exchange the money for rice. He would have to look for a rice growing farmer who not only wants to sell rice but also wants to buy the pots in exchange. That is, both parties have to agree to sell and buy each others commodities. In the given statement which situation is mentioned?
  • A
    Correlation of wants
  • Double coincidence of wants
  • C
    Barter system of wants
  • D
    Incidence of wants

Answer

Correct option: B.
Double coincidence of wants
(b) Double coincidence of wants
Explanation:
Double coincidence of wants means when both the parties - seller and purchaser - agree to sell and buy each other's commodities. It implies that what a person desires to sell is exactly what the other wishes to buy.

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