Question

1)Explain how a chain of market is formed .what purpose does it serve

Answer 1

Explanation:

Goods are produced in factories, Goods are also produced in farms and in homes. But we are required to go to factories or farms to buy goods of our need Because the producers are not interested in selling us small quantities. The wholesale traders do this job. They are the people who come in between the producer and the consumer. They first buy good in bulk. They sell these goods to the retailers, who finally sell this to the consumers

It serves great purpose. It maintains flow of money. It makes easy availability of various items of our daily use. It also promotes co-ordination in society.