Question

Explain how a chain of markets is formed. What purpose does it serve?


NCERT Class 7th Social Science (Social and Political Life) Chapter 8- Markets Around Us

Answer 1

A chain of markets is formed when number of traders supply goods from the producers to the consumers.
A chain of markets serves the purpose of a producer and consumer.

Answer 2

A chain of markets is formed when a number of traders supply goods from the producers to the customers.

• We have wholesale markets where the dealers buy goods in bulk at low prices and sell those goods in weekly markets to the consumers. This creates a chain of the market.
• The chain market includes producers, wholesalers, retailers, customers, and middlemen.
• The purpose a chain of the market serves is of producer and consumers. It helps the far away producers to sell their goods in cities and towns.
• Also, neither a producer can sell a small quantity of goods nor can the individual consumer can buy a bulk of goods.