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Class 7 Social Science Chapter 12 Question Answer Understanding Markets
NCERT Class 7 Social Science Chapter 12 Understanding Markets Questions and Answers Solutions
Understanding Markets Class 7 Question Answer (In-Text)
The Big Question (NCERT Page No. 247)
Question 1.
What are markets and how do they function?
Answer:
Market is a place where people buy and sell goods. It is also known as bazaar, haat (in Hindi) and marukatte (in Kannada).
Market functions in the following way
1. Buyers come to purchase goods or services.
2. Sellers offer goods or services in exchange for money.
3. Prices are usually set based on demand and supply.
Question 2.
What is the role of markets in people’s lives?
Answer:
Market plays the following role in life of people
1. Markets help people buy the things they need.
2. They give sellers a way to earn money by selling goods or services.
3. Markets offer many choices to buyers.
Question 3.
What role does the government play in markets?
Answer:
Role of the government in markets
1. The government makes rules and laws to ensure fair trade in the market.
2. It checks the quality of goods like food, medicines etc to protect consumers.
3. The government can also support small sellers by providing space, loans or training.
Question 4.
How can consumers assess the quality of goods and services they purchase?
Answer:
Consumers can assess the quality of goods and services by
1. Checking for quality marks like ISI, Agmark or BIS.
2. Reading labels for details like manufacturing date, expiry date, ingredients and instructions.
2. Looking at reviews or ratings, especially for online purchases.
Let’s Explore (NCERT Page No. 251)
Question 5.
Can you imagine what this bazaar must have looked like during its peak?
Answer:
Hampi bazaar during its peak must have looked like
1. A lively and busy marketplace in Karnataka.
2. Shops sold goods like gold, gems, spices, silk and idols.
3. Sounds of bargaining, music and festive celebrations.
Let’s Explore (NCERT Page No. 251)
Question 6.
Observe the illustration. What are these people discussing? Imagine you and your partner as a buyer and a seller of guavas. Prepare a set of dialogues between both of you and present it in your class as a skit.
Answer:
Scene A busy fruit market
• Seller Hello! Fresh guavas for sale! Sweet and juicy! Only ?60 per kilo!
• Buyer Hello! These guavas look nice. Are they fresh?
• Seller Yes, very fresh! Picked this morning from my farm.
• Buyer Hmm… Can I taste one?
• Seller Of course! Here, try this one.
• Buyer (tastes) Mmm, it’s sweet! But ?60 seems a bit high. Can you give it for ?50?
• Seller Hmm… these are top quality. But for you, okay, ?55 per kilo.
• Buyer Alright! Give me 2 kilos, please.
• Seller Here you go! That will be ?110.
• Buyer (pays money) Thank you! I’ll come again.
• Seller Thank you! Come again soon!
Think About It (NCERT Page No. 252)
Question 7.
Can you think of a type of market where negotiation is less common and why?
Answer:
Supermarkets or shopping malls are places where negotiation is less common. This is because
- The prices are fixed and clearly labelled on each product.
- These stores use barcode systems and digital billing, which don’t allow price changes at the counter.
- They follow standard pricing policies set by the company.
- Customers are expected to choose and pay without bargaining.
(NCERT Page No. 252)
Question 8.
What happens in case the seller fixes the price very high?
Answer:
The following things are likely to happen if the seller fixes the price very high
1. Buyers may refuse to buy the product.
2. They may look for cheaper options elsewhere.
3. The seller may lose customers and face fewer sales.
(NCERT Page No. 253)
Question 9.
What happens in case the seller fixes the price very low?
Answer:
The following things are likely to happen if the seller fixes the price very low• More buyers may be attracted, leading to higher sales.
- The seller might not earn enough profit or may face losses.
- Buyers might doubt the quality of the product.
- If the low price continues, it may affect the overall market value of that product.
Think About It (NCERT Page No. 254)
Question 10.
Vegetables are sold cheaper late at night at the weekly market compared to during the day. Why do you think this is so? Garment stores offer heavy discounts on woollen clothing at the end of the winter season. Why does this happen?
Answer:
- Vegetable prices drop late at night in weekly markets because
- Sellers want to clear their stock before packing up.
- Vegetables are perishable and may spoil by the next day.
- Lower prices attract more buyers quickly, helping sellers avoid wastage.
- Garment stores offer discounts at the end of winter because
- Woollen clothes are seasonal and not in demand after winter.
- Shops offer heavy discounts to clear out old stock before storing new seasonal items.
- It helps free up space and money for summer collections.
Think About It (NCERT Page No. 255)
Question 11.
What do you think are the pros and cons of online and physical shopping respectively? Explore this question from the point of view of both, sellers and buyers.
Answer:
Pros and cons of online and physical shopping From the Buyer’s Perspective Online Shopping Pros
• Shop from anywhere, anytime.
• Easier to compare prices across different websites.
• Products are delivered directly to your doorstep.
Cons
• Waiting for delivery, can be time-consuming.
• Can’t physically check the quality or size.
• Additional charges for delivery.
Physical Shopping Pros
• Buy and take home the product instantly.
• Ability to see, touch and try products before purchasing.
• No need to worry about delivery charges.
Cons
• Limited to what’s available in the store.
• You have to physically go to the store.
• Can be uncomfortable, especially during sales or peak hours.
From the Seller’s Perspective Online Shopping
Pros
• Can sell to customers across the country or even globally.
• No need for a physical store space, reducing rent and utilities.
• 24/7 access to products, potentially increasing sales.
Cons
• High Costs for packaging and delivery.
• Managing returns can be complicated.
• New customers may hesitate to buy online due to fears of fraud or poor quality.
Physical Shopping Pros
• Direct communication with customers, building trust.
• Customers can express their opinions and make purchases immediately.
• More direct relationship with a specific local community.
Cons
• Restricted to local customers or foot traffic.
• Rent, utilities and staff salaries can be expensive.
• Must operate within store hours, limiting potential sales.
Question 12.
Some services require in-person contact like tailoring and cannot be provided online. Can you suggest other services where physical markets are needed? Answer: Some services where physical markets are needed are haircutting and beauty services, Medical check-ups, Repair services, Construction work .Traditional handicrafts and pottery.
Let’s Explore (NCERT Page No. 257)
Question 13
Observe the diagram and describe the flow of goods from the manufacturer/producer to the consumer. What is the role of the wholesaler and the retailer in the flow?
Answer:
Don’t Miss Out (NCERT Page No.261 )
Question 14.
Can you spot the port, highway and railway network on the map in Fig. 12.24? How do you think they helped make Surat a trading hub?
Answer:
Ports, highway and railway network helped Surat a trading hub in following ways
- Surat’s port allowed sea trade with other countries.
- Highways helped move goods quickly by road.
- Railways connected it to major cities for easy transport.
- These networks made trade faster, cheaper and more efficient.
Think About It (NCERT Page No. 263)
Question 15.
We have discussed different dimensions of markets. Can we imagine what life might be like without markets? What would happen if farmers did not bring rice, wheat, dal, vegetables and fruits to the market? What would happen if the producers of cloth in Surat could not procure inputs like cotton from markets?
Answer:
Without markets, people would struggle to get daily essentials like food and clothes.
- If farmers didn’t bring crops to markets, there would be shortage of rice, wheat, vegetables and fruits.
- If cloth producers in Surat couldn’t get cotton, they wouldn’t be able to make clothes.
- People would have to grow or make everything themselves, which is difficult and time-consuming.
- Markets help connect buyers and sellers, making life easier and more efficient.
Question 16.
Can you think of other products which do not have a ready market? How does it affect those willing to buy or sell? What are the different ways in which artists can find buyers for their work today?
Answer:
Yes, some products do not have a ready market, such as
1. Handmade crafts
2. Unique artworks
3. Traditional musical instruments
4. Rare books
Impact on Buyers and Sellers
• Sellers struggle to find customers and may not earn a fair price.
• Buyers may find it hard to locate these products or pay higher prices due to limited availability.
Ways Artists Can Find Buyers Today
1. Online platforms like Instagram, Etsy and art websites.
2. Art exhibitions and fairs to showcase their work to the public.
3. Social media to market directly and build a following.
4. Selling through e-commerce websites like Amazon or niche craft platforms.
These methods help artists reach wider audiences and sell their work more easily.
Let’s Explore (NCERT Page No. 263)
Question 17.
Consumers prefer to buy refrigerators that use less electricity. When a large number of consumers begin to ask for refrigerators that use less electricity, what do you think happens in the network.
Answer:
When many consumers prefer energy-efficient refrigerators
1. Companies start producing more of them.
2. Manufacturers may improve technology to meet this demand.
3. This helps in saving electricity and protecting the environment.
Let’s Explore (NCERT Page No. 265)
Question 18.
Have you observed any such practices in your community or neighbourhood? Describe the practice as a drawing or in a short paragraph.
Answer:
In my community, during festivals or weddings shopkeepers often give a small packet of sweets or dry fruits along with the purchased items as a gesture of goodwill. It is seen as a way to share happiness and build good customer relationships. This tradition shows that markets are also about culture, respect and connection, not just buying and selling.\
Let’s Explore (NCERT Page No. 266)
Question 19.
Onions are an important part of the cuisine in most parts of India. In some seasons, the supply of onions comes down in the market. What do you think happens to the price of onions when this happens?
Answer:
When the supply of onions decreases in the market, but the demand remains the same or increases, the price of onions usually goes up. This is because there are fewer onions available for the same number of buyers, leading to scarcity, which pushes prices higher.
Question 20.
What will happen if the people supplying onions tfo not bring the required quantities to the market? What do you think the government should do in this situation?
Answer:
If suppliers do not bring enough onions to the market, there will be a shortage, causing prices to rise.
The government should release buffer stock, import onions, prevent hoarding and sell onions at subsidised rates to control prices and help consumers.
Think About It (NCERT Page No. 267)
Question 21 .
What are the other areas where you can see the government being involved in the markets?
Answer:
The government is involved in many areas of the market, such as Public Distribution System (PDS), subsidies, collecting taxes and duties and providing goods and services like electricity, water, education and healthcare.
Question 22.
Are there areas where government intervention needs to be reduced? Discuss with family or relatives.
Answer:
Yes, there are areas where government intervention may need to be reduced to improve efficiency and encourage competition. For example
- Over-regulated businesses Too many rules can slow down small businesses and startups.
- Public sector companies In some industries like airlines or telecom, private companies may perform better.
- subsidies Excessive subsidies can lead to waste and dependency.
- Price controls In some cases, fixing prices may cause shortages or poor-quality goods.
Think About It (NCERT Page No. 268)
Question 23.
There is a marbles competition in your neighbourhood with the team in the next street. You want to buy new marbles for the competition. You have ?150 saved up. You go to a shop to buy the marbles. What are the qualities you would look for in the marbles so that you can win the competition?
Answer:
To win the competition, I would look for marbles that are
- Strong and durable so they don’t crack or break easily.
- Well-balanced and round for better aim and control.
- Smooth and shiny surface to roll easily on the ground.
- Right size and weight comfortable to hold and accurate in play.
- Affordable and value for money within my? 150 budget.
Class 7 SST Chapter 11 Understanding Markets Question Answer (Exercise)
Questions And Activities (Pages No. 271 – 272)
Question 1.
What are the main features of a market? Recall a recent visit to a market to purchase a product. What are the different features of a market that you observed during this visit?
Answer:
Main features of a market
- Buyers and Sellers People come together to exchange goods and services.
- Goods or Services Items like vegetables, clothes or services like haircuts are sold.
- Price Determined by supply and demand or through bargaining.
- Competition Many sellers offering similar products. (Example from a Market Visit)
During a visit to the local vegetable market to buy tomatoes
- I saw many sellers with different prices and quality.
- I could compare prices before buying.
- Some buyers were bargaining.
- here were both cash and digital payment options.
- The market was crowded, busy and had a variety of fresh vegetables.
Question 2.
Remember the epigraph from a famous economist at the beginning of the chapter? Discuss its relevance in the context of the chapter you have read.
Answer:
The epigraph by Adam Smith highlights how markets emerge because people need goods and services they can’t produce themselves. This connects to the chapter, which explains market structures, trade, consumer behaviour and government roles. Markets facilitate exchanges, create economic opportunities and shape daily life, making Smith’s insight highly relevant.
Question 3.
In the example of buying and selling of guavas, imagine that the seller is getting a good price and is able to make a profit. He will try to get more guavas from farmers to be able to sell them at the same price and increase his earnings. What is the farmer likely to do in this kind of a situation? Do you think he will start thinking about the demand for guavas in the next season? What is likely to be his response?
Answer:
Yes, if the seller is making a good profit and wants more guavas, the farmer will likely take notice of the increased demand.
The farmer’s likely response
- He may grow more guavas next season to take advantage of higher prices.
- He might invest in better seeds, fertilisers, or tools to increase production.
- He will start thinking about market demand and may plan his crop accordingly.
Question 4.
Match the following types of markets with their characteristics.
| Markets | Criteria |
| Physical market | Goods and services flow outside the nation’s boundaries |
| Online market | Deals in bulk quantities |
| Domestic market | Serves the final consumers with goods and services |
| International market | Requires physical presence of buyers and sellers |
| Wholesale market | Buyers and sellers meet virtually and can transact at any time |
| Retail market | Lies within the boundaries of a nation |
Answer:
1. Physical market Requires physical presence of buyers and sellers.
2. Online market Buyers and sellers meet virtually and can transact at any time.
3. Domestic market Lies within the boundaries of a nation.
4. International market Goods and services flow outside the nation’s boundaries.
5. Wholesale market Deals in bulk quantities.
6. Retail market Serves the final consumers with goods and services.
Question 5.
Prices are generally determined by the interaction between demand from buyers and supply by sellers. Can you think of products where prices are high despite lesser number of buyers demanding the product? What could be the reasons for that?
Answer:
Yes, there are certain products where prices are high despite fewer buyers. Some examples include
• Luxury goods (e.g., designer clothing, expensive watches, high-end cars)
Answer:
- Physical market Requires physical presence of buyers and sellers.
- Online market Buyers and sellers meet virtually and can transact at any time.
- Domestic market Lies within the boundaries of a nation.
- International market Goods and services flow outside the nation’s boundaries.
- Wholesale market Deals in bulk quantities.
- Retail market Serves the final consumers with goods and services.
Question 6.
Prices are generally determined by the interaction between demand from buyers and supply by sellers. Can you think of products where prices are high despite lesser number of buyers demanding the product? What could be the reasons for that?
Answer:
Yes, there are certain products where prices are high despite fewer buyers. Some examples include
Luxury goods (e.g., designer clothing, expensive watches, high-end cars)