(i) With the introduction of money, the value of each commodity can be estimated from its price which is in terms of a common unit, say rupees.
(ii) For e.g., we know that the value of one pen is Rs.10 and value of a notebook is Rs.20.
Therefore, 2 pens are equivalent to 1 notebook. Therefore, the relative value of goods can be determined.
(iii) In barter system, if there are 10 goods the price of each good is measured in terms of 9 other goods which makes the exchange more complex. Thus, there is no common measure of value which gets overcome with the introduction of money.
