explation how a chain of marks markets is formed what purpose does it server
Answers
Answer:
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Explanation:
(i) A chain of markets is formed starting from wholesale markets to retail shop owners who sell directly to the consumers. In between wholesale markets and retailers there are medium and big traders. For example, a hawker or retailer purchases plastic items from a wholesale-trader in the town. The town wholesaler, in turn, buys from a bigger wholesale trader in the city. The city wholesale trader buys a large quantity of plastic items directly from the factory and stores them in their godowns. Thus, a chain of market is formed. (ii) A chain of market serves the purpose of producer and consumers. Because neither a producer can sell a small quantity of goods to an individual consumer nor an individual consumer can buy large quantity of goods from producers. So, wholesale traders, retailers, etc. are required to link the producers and consumers.
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.