Explain how a chain of market is formed and what purpose does it serve ? Draw a chain of market??
Answers
Hii dear here is your answer.
Goods are produced in factories, goods are also produced in farms and in homes. But we are not required to go to factories and farms to buy goods of pur needs, because the producers are not interested in selling us small quantities. The wholesale traders do this job. The people who came in between the producers and the final consumer. They first buy goods in bulk. Then they sell these goods to the retailers, who finally sell this to the consumers.
From the above instance we come to the conclusion that from factories to final consumers a chain is formed, which we may call a chain of markets. We can better understand it through the given flow chart given below.
Factories/farms -> Wholesale traders-> Retailers-> Consumers.
It serves great purpose. It maintains flow of money. It make easy availability of various items of our daily use. It also promotes co-ordination in society.
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