Students read RBSE Class 7 SST Notes Chapter 12 Understanding Markets Class 7 Notes before attending weekly tests.
Class 7 Understanding Markets Notes
Class 7 SST Chapter 12 Understanding Markets Notes
Class 7 SST Chapter 12 Notes – Understanding Markets Notes Class 7
→ What is a Market?
(i) A place where people buy and sell goods is called a market.
(ii) For a long time, people have relied on markets to fulfil their needs and wants for goods and services.
(iii) Markets are also places for interaction as they bring people together and enable exchange of ideas and traditions.
→ Markets and their function—
(i) Markets facilitate exchange between buyers and sellers at a mutually agreed price which is determined by the demand from buyers and supply by sellers.
(ii) Price is the amount at which a buyer is willing to buy, and a seller is willing to sell particular goods or services.
→ Markets Around Us—
Markets are present everywhere and in various forms—
(1) Physical and online markets—
(a) Physical markets — A physical market is where buyers can meet the seller physically, and purchase goods or services in exchange for money. Such as weekly markets, haat, local market shops, malls in cities etc.
(b) Online markets — Online market are platform where buyers and sellers do not need to meet in person to conduct transactions. They can transact from a convenient location even thousands of kilometres away from each other. They can use shopping applications (apps) or websites on a phone or a computer.
(c) Other types of markets — There are other types of markets that do not transact goods and services. One of them is the share or stock market.
(2) Domestic and international markets —
(a) Domestic markets — A market where goods and services are bought and sold within the geographical boundaries of the country is called a domestic market.
(b) International markets — A market where goods and services are bought and sold outside the geographical boundaries of a country is called an international market. It involves the import and export of goods and services.
(3) Wholesale and Retail Markets—
(a) Wholesale Markets — The place where wholesalers store grains, vegetables, and fruits is called a warehouse. These warehouses also have cold storage facilities to prevent the goods from spoiling. The market where these goods are then brought is called a mandi (wholesale market). Similarly, there are wholesale markets for other commodities as well.
(b) The place where wholesalers store grains, vegetables, and fruits is called a warehouse. These warehouses also have cold storage facilities to prevent the goods from spoiling. The market where these goods are then brought is called a mandi (wholesale market). Similarly, there are wholesale markets for other commodities as well.
(c) Distributors — Individuals or businesses who supply goods from manufacturers and wholesalers to retailers.
(d) Aggregator — Website or mobile application that organizes and combines offers from multiple sellers and sells them to consumers at one place.
Thus, a chain of partners in the market, such as producers, wholesalers, distributors, collectors, and retailers, ensures the supply of goods to the final consumer.
→ The Role of Markets in People’s Lives—
Markets play an important facilitates transactions between producers and consumers.
→ How markets benefit society—
- The market promotes economic activity.
- Often, a relationship develops between buyers and sellers that continues even across generations.
- The market provides employment.
- The market is a melting pot of cultures. People from different communities come together to exchange ideas and enjoy shared traditions.
Government’s Role in the Market—
(1) The government plays a regulatory role in the markets to promote quality standards for products and services and fair practices in the market. Such as—
- It controls prices to protect both buyers and sellers.
- This ensures quality and safety standards.
- This reduces the external influences on the markets.
- It provides public facilities and services.
(2) However, consumers can also assess the quality of products and services through certification marks on the products from government agencies and through online reviews.
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