NCERT Solutions for Class 7 Civics Chapter 8 – Markets around Us

 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.

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 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 the supply and demand of the economy.

Yes, it is applied to all the shops with expensive items. Even if the consumer cannot afford to buy them, the shopkeeper is still obligated to show the items up for display. The shopkeeper, under no circumstances, may force the consumer to buy the item presented. That decision is solely left to the discretion of the consumer. An example of this can be given below:

Sujata and Kavita went to Ansal Mall for a casual visit. While exploring their way through the mall, they enter a shop which is selling branded clothes. Although they marvel at the quality of the clothes, the outlandish price tags on them made them move away to a different shop selling the same type of clothes at a reasonable price.

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.

For example, in clinics and nursing homes, we may have noticed sales representatives from medical companies waiting for the doctor to arrive. Such people are also engaged in the selling of goods. Thus, buying and selling take place in different ways and do not require the physical presence of a shop.