Markets Around Us — Social Studies STD 7 — Question
CBSE BoardEnglish MediumSTD 7Social StudiesMarkets Around Us5 Marks
Question
How is chain of markets set up?
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Answer
Chain of markets has visible and invisible links:
Wholesalers buy the products in bulk directly from the producers.
Every city has areas with wholesale market from where the goods are supplied to other traders.
Retailers buy goods in smaller quantities from the wholesalers and take them to different parts of the city.
The road side hawkers further purchase these goods either from a wholesaler or a retailer to sell it in particular localities.
Wholesale trader bought large quantity of goods from factory or producers and store them in godowns.
In this way a chain of markets is set up through which the goods finally travel to reach us.
Certain services are also sold like this e.g., representatives of various companies go to the retailers or sometimes directly to the consumer to sell their products.
Chain of Markets serves the following purposes:
Factories and wholesalers need not find consumers of their goods.
Several people get benefited.
Consumers get goods of their needs in small quantities.
They get goods from their nearby places, they do not need to walk long distances.
Factories and wholesalers do not sell goods in small quantities. It saves time and energy of the factory owners and the wholesalers.
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