Understanding Markets

Overview

A market is any place where buyers and sellers meet to exchange goods and services. From the local weekly market to big shopping malls and online stores, markets help goods travel from producers to consumers. Markets are an essential part of our everyday economic life.

Key points

• There are different markets: weekly markets, neighbourhood shops, shopping malls and online markets.
• Goods pass through a chain of buying and selling from producer to wholesaler to retailer to consumer.
• Wholesalers buy in large amounts; retailers sell in small amounts to customers.
• Prices may differ from place to place depending on demand and supply.
• Online markets (e-commerce) let people buy and sell using the internet.

Important terms / dates

• Market - a place where buying and selling happen.
• Wholesaler - one who buys and sells goods in large quantities.
• Retailer - one who sells goods directly to consumers.
• Consumer - the person who finally buys and uses a product.

Important questions

1. What is a market?
2. Name different types of markets.
3. How do goods reach the consumer from the producer?
4. What is the difference between a wholesaler and a retailer?

Quick revision

A market is where buyers and sellers exchange goods and services. Goods move through a chain from producer to wholesaler to retailer to consumer. Markets range from weekly bazaars to shopping malls and modern online e-commerce stores.