Question

Explain how a chain of market is formed and what purpose does it serve?

Answer 1

ANS : A chain of markets is formedwhen a number of traders supply goods from the producers to the consumers. We thus have wholesalemarkets where other dealers buy the goods in bulk. These dealers then sell the goods in weekly markets to consumers and thus a chain of markets is formed.

Answer 2

Explanation:

A series of markets that are connected like links in a chain as products pass from one market to another is called the chain of markets.

In other words, it is the people in between the producers and consumers who are the traders.

The wholesaler first buys the goods in large quantities.

The retailer buys from the wholesaler and sells it to the consumer.

The chain of markets can be direct or indirect heaps the consumer's convenience in the view and it provides employment to a large number of people.