Explain how a chain of markets is formed .What purpose does it serve?
Answers
Answer:
hello
here is your 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. These dealers then sell the goods in weekly markets to consumers and thus a chain of markets is formed.
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.