Chapter 7 focuses on aspects of life and commercial cycles associated with the market. In this chapter, students will learn about the weekly market, shops in the neighbourhood, shopping complexes and malls, chains of markets, markets and equality.
1. In what ways is a hawker different from a shop owner?
Solution: A hawker does not have a fixed location from where they sell their items. Instead, they move from one location to another, selling their wares at a minimum profit. There is a minimum capital investment when it comes to setting up a business unit, and there is no limit to the wares that can be sold by a hawker while bringing their service to the very doorstep of customers.
A shopkeeper has a fixed building from where they sell their wares. Customers will come to buy their desired items at the shops. A shopkeeper’s customer base is limited to the geographical location of their shop. The wares sold can be limited to the type of shop. For example, a clothing store will only sell clothes, while an electrical shop will only sell electric items, etc.
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2. Compare and contrast a weekly market and a shopping complex on the following:
| Market | Kind of goods sold | Prices of goods | Sellers | Buyers |
| Weekly market | ||||
| Shopping complex |
Solution:
| Market | Kind of goods sold | Prices 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?
Solution: Goods are first produced in factories, farms and homes (depending on the type of business it is). However, it does not mean that a consumer needs to visit these places to buy these goods since the ones making them will not sell in small quantities to an individual buyer.
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 retailers. The amount sold will be by 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 the 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.
All persons indeed have equal rights to visit any shop in the marketplace. But this is not true of shops with expensive products. It is because of the following:
- 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.
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5. ‘Buying and selling can take place without going to a marketplace.’ Explain this statement with the help of examples.
Solution: The age of the internet has opened the proverbial door to new opportunities. Now one does not need a physical marketplace to buy and sell goods. They can now be purchased online through cards and payment apps. One can just place the order, and it will be delivered to their doorstep. It applies to even local Kirana stores, where with the help of a web or mobile app, one can place orders for groceries, and they will be delivered to them.