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Class 7 Understanding Markets: cheat sheet
CBSE Social Science. How markets bring buyers and sellers together, wholesale and retail, exports and imports, online markets, and how the government protects buyers.
Key ideas
- A market is where buyers and sellers agree on a price for goods or services.
- Physical markets meet in person; online markets work through apps and websites, and aggregators gather many sellers in one place.
- A wholesaler buys in bulk from producers; a distributor carries goods on; a retailer sells small amounts to consumers.
- Each trader adds a margin, so the price rises from farm to shop.
- A domestic market is within a country; exports and imports make an international market.
- The government provides public goods (parks, roads, policing) and sets a minimum support price so farmers do not lose when prices fall.
- Certification marks and labels protect buyers.
Remember
| Export / import | selling to / buying from another country |
| Trader’s margin | selling price − buying price |
| FSSAI | packaged food checked for safety |
| AGMARK / ISI | farm products / quality of goods like electricals (BIS) |
| BEE star label | more stars = less electricity used |
| Food label | net quantity, MRP, date of manufacture, best-before date |
| Ima Keithal (Imphal) | market run by about 3,000 women |
Watch out
- Mixing up wholesalers (sell in bulk to traders) and retailers (sell small amounts to consumers).
- Mixing up exports (sold abroad) and imports (bought from abroad).
- Reading more BEE stars as more electricity: more stars means less.
Worked example
A farmer sells wheat to a wholesaler at ₹24 a kg. The wholesaler sells to a retailer at ₹30 and the retailer to consumers at ₹36. (a) How much does each trader add per kg? (b) What does a consumer pay for 10 kg? (c) Why does the government set a minimum support price for wheat?
Working: 30 − 24; 36 − 30; 10 × 36
Answer: (a) wholesaler ₹6, retailer ₹6 (b) ₹360 (c) So farmers do not make a loss when prices fall.
Practise Understanding Markets
Revise with this page, then practise: every Understanding Markets sheet in the app is new, with an answer key and working.
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