Markets Around Us

Exercise

Glossary                 

Term	Explanation
Weekly Market	These markets are not daily markets but are to be found at a particular place on one or maybe two days if the week. These markets most often sell everything that a household needs ranging from vegetables to clothes to utensils like Sunday Market
Mail	This is an enclosed shoping spaces. This is usually a large building with many floors that has shops, restaurants and, at times, even a cinema theatre. These shops most often sell branded products.
Wholesale	This refers to buying and selling in large quantities. Most products, including vegetables,fruits and flowers have special wholesale markets.
Chain of Markets	A series of markets that are connected like links in a chain because products pass from one market to another.

Questions

1. In what ways is a hawker different from a shop owner? 

Answer: A hawker provides door to door service. He sells his goods by calling out the names of his items. He generally owns a hand pulled cart and keeps in it different items of our everyday use. He sells his goods at a minimum profit.

A shop owner runs his shop at one fixed place. Whenever we need anything we go there and purchase it. Here, we get things at a somewhat costlier rate.

2. Compare and contrast a weekly market and a shopping complex on the following:

Market	Kind of goods sold	Price of goods	Sellers	Buyers
Weekly market
Shopping complex

Answer:

Market	Kind of goods sold	Price of goods	Sellers	Buyers
Weekly market	Different items of everyday use such as vegetables, groceries, cloth, items, utensils, etc.	Prices of goods are not that high. They can be easily afforded	Small traders and hawkers	People belonging to the lower-middle-income group
Shopping complex	Branded items such as readymade clothes, home appliances, footwear, leather items, etc. In some complexes, there are even food items available for immediate consumption	Prices of goods are usually high. Only those who have a high income can buy them	Big businesses and traders	People belonging to the upper-middle class and above.

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

Answer: Goods are first produced in factories, farms and homes. This is where wholesale traders come in. They are the intermediaries between the producers and the final consumers. They first buy the goods in bulk and then sell them to the retailers. The amount sold will be in accordance with the demand prevalent. These retailers will finally sell it to the end consumers.

Thus, it can be inferred that from factories to consumers, a chain is formed. This is called a chain of markets or market chain. It can be better understood from the flow chart given below:

It is this market chain that maintains equilibrium in supply and demand of the economy.
4. 'All persons have equal rights to visit any shop in a marketplace'. Do you think this is true of shops with expensive products? Explain with examples. 
Answer: It is true that all persons have equal rights to visit any shop in the marketplace. But this is not true of shops with expensive products, because:

• People with high incomes can buy expensive products. Hence, these people go to the shops with expensive products and not the poor or people with low income.
• The low-income group people visit the shops or weekly markets to buy goods as these goods are available at cheaper rates.

Examples:
People with high income buy green vegetables from multiplexes or malls while poor people purchase green vegetables from small vegetable sellers or from hawkers.
5. 'Buying and selling can take place without going to a marketplace'. Explain this statement with the help of examples. 
Answer: It is correct that buying and selling can take place without going to a market place. It is done in the following manner.
Examples:

• We can order goods that we need over the telephone and get their delivery.
• Over the internet, we can visit the concerned website and order the products.
• We can pay through internet banking or on the delivery of goods.