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In barter system, both parties have to agree to sell and buy each other’s commodities known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. For example:- Take the case of a shoe manufacturer. He wants to sell shoes in the market and buy wheat. The shoe manufacturer has to first find for a wheat growing farmer who not only wants to sell wheat also wants to buy the shoes in exchange. But how easy it would be, for the shoe manufacturer, if only he sold his shoes for money.
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