3. Explain how a chain of markets is formed. What purpose
does it serve?
Answers
Answer:
A chain of markets is formed when a number of traders supply goods from the producers to the consumers. We thus have wholesale markets where other dealers buy the goods in bulk. ... The chain serves the purpose of bringing the goods from the producers, who live in far off areas, to consumers in towns and cities.
Explanation:
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Answer:
Chain of markets is a series of markets that are connected like links in a chain because products pass from one market to another.
(i) Vegetables are produced on farms.
(ii) The vegetable wholesale trader buys goods in large quantities.
(iii) These will then be sold to other traders.
(iv) Retailers took these vegetables to the market where consumer buy these.
Purpose it serve:
(i) Consumer can easily buy goods of far off places in the local markets.
(ii) Factories and producers need not to find their consumer directly.
(iii) It encourages production and new opportunities are created for people to earn.
(iv) Provides employment to the large numbers of people.