Markets Around Us
Short Answer Questions
Question 1: What do you mean by a mall?
Answer: A mall is a type of market found in the urban areas. It is an enclosed space for shopping. It is usually a large building with many floors which have shops, restaurants, cinema theatres etc. These most often sell branded goods.
Question 2: Write briefly about weekly markets.
Answer: Weekly markets are the markets found at a place during one or two days of the week. They are not daily markets. They sell a range of products from fruits and vegetables to clothes to utensils. They have high competition.
Question 3: Describe briefly the concept of ‘markets everywhere’.
Answer: These days it is not necessary for the consumers to go to the market like weekly markets or neighbourhood shops etc (which have a specific location and time of functioning) to buy things. They can either order goods on phone or use the internet and buy things online. The medical representatives in clinics are also actually selling their goods. Hence we can say that markets are found everywhere and they have different styles of functioning.
Very Short Answer Type Questions
Question 1: Define the term ‘chain of markets’.
Answer: Chain of markets refers to the series of markets where products pass from one market to another. These markets are connected like a link in a chain.
Question 2: Define the term retailer.
Answer: The trader who finally sells to the consumer is called the retailer.
Question 3: What do you mean by wholesale?
Answer: This refers to buying and selling in bulk. Products like fruits, vegetables and flowers have wholesale markets.
Question 4: Why are the goods in a weekly market cheap?
Answer: The products in the weekly market are cheap because since these shops are not permanent, they save on expenses such as rent, electricity, and fees to the government. Since these are family-run, they also save the expenses of wages to workers.
Long Answer Type Questions
Question 1: How are the buyers and sellers of a small shop different from that of a mall?
Answer: The difference in the buyers and sellers of a small shop and a mall is as under:
- Sellers: There is a difference between the small shop owners we see in the weekly market and the ones in a big shopping complex. The former is a small trader with little money whereas the latter is very rich and can spend a huge amount of money to set up the shop. The difference in their earnings is also substantial.
- Buyers: The buyers of the weekly market cannot afford even the cheapest of goods whereas the buyers visiting the malls are able to afford the branded goods and other luxury items on sale there. Hence there is a huge difference in the income levels of the buyers of both the markets.
Question 2: Write a note on markets for indirect goods.
Answer: A market exists also for goods that are not directly used by the consumer. These goods are the raw materials or other inputs used in the process of manufacture. For example the fertilizers used by the farmers are purchased by him from a shop in the city. The shopkeeper in turn buys them from factories. The products used in manufacturing and assembling a car like the engine, axles, petrol tanks etc are also bought and sold in different markets. Hence a chain of markets exists for indirect goods also.
Question 3: Describe the chain of markets.
Answer: Chain of markets refers to the series of exchange of goods that takes place from the moment the goods are produced to the time they reach the end user i.e. the final consumer. Goods are produced in factories, farms and homes. But we do not buy directly from factories or farms. Even the producers will not be willing to sell small quantities like one dress or one kilogram of wheat to the consumers. Hence traders come into picture. Traders are the people in between the producer and the final consumer.
The wholesale trader is the first to buy goods from factories or farms in bulk and stores them in the godown. For example, he may buy 50 to 100 kilograms of rice. He then sells it to other traders. There could be any number of traders involved in the chain. Between these traders, buying and selling takes place. It is because of these traders that goods reach faraway places. The trader who finally sells the product to the consumer is called the retailer. These retailers are the traders in the weekly markets or neighbourhood shops or malls.
Question 4: What are the features of a weekly market?
Answer: Weekly markets have the following features:
Cheaper Rates: Many items are available in the weekly markets at cheaper rates. This is because since these shops are not permanent, they save on expenses such as rent, electricity and fees to the government.
Family run: The shop owners store the items they sell at home. Mostly, they are helped by the family members and hence they do not employ outside people. Hence they save the money spent as wages to workers.
High Competition: Since these markets have a large number of shops selling the same item, there is high competition among them. Hence if a seller charges a higher amount for an item, buyers will buy from another seller who either charges a lower rate or allows the buyer to bargain to some extent.