Let us Explore (Page 257) Observe the diagram and describe the flow of goods from the manufacturer/producer to the consumer. Class 7
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Let us Explore (Page 257) Observe the diagram and describe the flow of goods from the manufacturer/producer to the consumer. Class 7
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? Class 7
Answer:
The flow of goods starts with the producer, who makes products by using the inputs like labour, machinery, raw material and capital. Then, wholesalers buy these products in large amounts and store them. Retailers buy from wholesalers and sell smaller amounts directly to consumers.
Role of wholesalers and retailers:
- The wholesalers have large quantity of goods satisfy the demand of numerous retailers. It reduces the burden of storage of producer, having warehouses.
- Retailers have varieties of products and located near to the households, which is convenient for them to get their needs. They sell goods in small quantities, explain product information, provide credit and home delivery.