Read the following dialogue between two people: Sita: I want 1 Kg of potatoes
Read the following dialogue between two people:
Sita: I want 1 Kg of potatoes
Rani: What will you give in exchange?
Sita: I can give you 2 litres of milk in return for the potatoes.
Rani: I don’t need milk. I want a pair of shoe
Which of the following problem is being faced by Sita and Rani in their exchange process?
(a) Lack of double coincidence of wants
(b) Absence of common units of value
(c) Lack of store of value
(d) lack of standard of deferred payment
Anurag Pathak Changed status to publish December 15, 2023
Ans – (a)
Explanation:-
Sita wants potatoes but wants to give 2 liters of milk to Rani.
But Rani does not want 2 liters of milk but wants a pair of shoes.
It means Sita and Rani have different wants and offers at the same time.
It is called the lack of double coincidence of wants
Double coincidence of wants refers to a situation where two people want to exchange their commodity at the same time.
Anurag Pathak Changed status to publish December 15, 2023
