Explain the types of market places


Explain the types of market places.


There are various types of market places. These include:

a) Village markets

b) Assembly markets

c) Wholesale markets

d) Retail markets

e) Mixtures of the last three

The price of the commodity is likely to rise between (a) and (d). Unless farmers can bring large quantities to market they are unlikely to obtain the prices paid in the wholesale market. Prices paid in village markets are much more likely to be nearer the price that the farmer should receive than prices paid in other markets.

1. Village Market

The market in the village, where small amounts of produce is sold to consumers.

2 Assembly Market

An Assembly Market is a place where farmers go to sell their produce to traders, who will then take the produce to a wholesale market. It is much more efficient for traders to purchase from farmers at one or two places rather than visit each individually. In fact, where roads are poor many farmers cannot be visited by truck. Assembly markets can take many different forms: in some cases they may be small areas where farmers and traders gather for a couple of hours on a regular or irregular basis; in others they may be weekly or twice-weekly markets. Normally, assembly markets can often be found in small towns close to farming districts. In this case, such markets also function as local wholesale markets and perhaps also as local retail markets.

3. Wholesale Market

A Wholesale Market is as a place where retailers and businesses buy their supplies. Deliveries to wholesale markets can be made by the farmers themselves or by traders who have either bought from farmers or perhaps from other smaller traders. Although in some countries the person delivering the produce direct to the wholesale market is responsible for selling it to retailers, in most cases a wholesale trader in the market will take delivery from farmers or traders and later sell the produce to retailers
Wholesale markets play important functions, because:
- Farmers and traders can deliver their produce to one location rather than to visit many retailers;
- Retailers can buy a wide range of produce at one place;
- The trading of large quantities of produce in one place makes possible the development of market prices, which reflect supply and demand. If individual traders were selling to individual retailers this would not be possible and prices would vary significantly all over a town or city.

4 Retail Market

A Retail Market is a place where consumers buy their supplies. The word 'consumer' includes families and individuals as well as small businesses such as restaurants and street food traders (larger businesses will probably
buy at wholesale markets, or even direct from the farmer). People who sell at retail markets are usually either specialist retailers who buy produce direct from farmers, or farmers themselves. Of course, formal markets account for only a small part of retail sales, with consumers often having a range of choices of where to shop, from sophisticated supermarkets, through small retail shops to retailers who sell from trucks, bicycles or at the side of the road.
janetraph answered the question on March 14, 2019 at 06:07

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