Q30. Explain how a chain of markets is formed. What purpose does
Goods are produced in factories, on farms and in homes. However, we don’t buy
directly from the factory or from the farm. Nor would the producers be interested
in selling us small quantities such as one kilo of vegetables or one plastic
mug. The people in between the producer and the final consumer are the traders.
The wholesale trader first buys goods in large quantities. These
will then be sold to other traders. In these markets, buying and selling takes
place between traders. It is through these links of traders that goods reach
faraway places. The trader who finally sells this to the consumer, is the
retailer. This could be a trader in a weekly market, a hawker in the
neighbourhood or a shop in a shopping complex.
serves a great purpose as it is through these links of traders that goods reach
faraway places. It provides employment to large number of people. Factories and
producers need not to find their customer directly. It maintains flow of money
in the society.
Q31. Why are things cheap in the weekly market?
Many things in weekly markets are available at cheaper rates. This is because
when shops are in permanent buildings, they incur a lot of expenditure – they
have to pay rent, electricity, fees to the government. They also have to pay
wages to their workers. In weekly markets, these shop owners store the things
they sell at home. Most of them are helped by their family members and, hence,
do not need to hire workers. Weekly markets also have a large number of shops
selling the same goods which means there is competition among them. If some
trader were to charge a high price, people would move to another shop where the
same thing may be available more cheaply or where the buyer can bargain and
bring the price down.
Q32. Explain with an example how people bargain in the market.
Can you think of a situation where the bargain would be unfair?
is a type of negotiation in which the buyer and seller of a good or service
debate the price and exact nature of a transaction. If the bargaining produces
agreement on terms, the transaction takes place.
asked the shopkeeper “how much this bag for?”
replied “1000 rupees”.
instantly replied, “400 rupees”.
laughed and said, “Not possible”.
replied, “700 rupees” and this is the final price.
replied, “Ok” and hand over the bag to Reena.
would be unfair in the following cases:
When the thing we are getting is already at
the lowest price and is of good quality.
When the person selling the item is economically
weak and his livelihood depends on what he sells.