It is said that barter is 'inefficient' because: There needs to be a 'double coincidence of wants' ... If a person wants to buy a certain amount of another's goods, but only has for payment one indivisible unit of another good which is worth more than what the person wants to obtain, a barter transaction cannot occur.
What are the disadvantages of barter system?
Drawbacks of Barter Systems:
- Lack of double coincidence of wants.
- Lack of a common measure of value.
- Indivisibility of certain goods.
- Difficulty in making deferred payments.
- Difficulty in storing value. Was this answer helpful? Similar questions. Which one of these is a limitation of the barter exchange? Medium.
What is the main problem of barter system?
Main problem lies when one has to exchange items with one another in exchange of something . but if one needs shoes and other requires maybe pulses then needs are not full filled with it means that both are not satisfied with one other and therefore a exchange medium money is required in the market.
