NCERT Solutions Class 7 Social Science Chapter 12 Understanding Markets

NCERT Solutions Class 7 Social Science Chapter 12 Understanding Markets help students learn how markets function and why they are important in everyday life.

The chapter explains what markets are, how buying and selling take place, and how prices are decided through demand and supply. Students will understand different types of markets such as physical and online markets, domestic and international markets, and wholesale and retail markets.

CBSE Class 7 Syllabus

Children will also learn about the role of the government in controlling prices, ensuring quality and safety of products, and protecting consumers. The chapter highlights how markets connect producers and consumers, influence people’s lives, and help in the exchange of goods, services, ideas, and traditions, giving students a clear understanding of how markets shape society.

Understanding Markets Class 7 Solutions

The chapter begins by explaining the concept of a market and how the buying and selling of goods and services take place through interaction between buyers and sellers. It discusses the process of price determination, highlighting the role of demand and supply in deciding prices in different market situations.

The chapter further explores various types of markets, including physical and online markets, domestic and international markets, and wholesale and retail markets. Students learn how goods move from producers to consumers through different stages and participants such as wholesalers, retailers, distributors, and aggregators.

A significant focus is given to the role of the government in markets, explaining how it controls prices of essential goods, ensures quality and safety standards, and protects consumers from unfair practices. The chapter also helps students understand how markets influence people’s lives, promote interaction among communities, and affect society as a whole, giving learners a clear understanding of the importance of markets in everyday life.

Understanding Markets Class 7 Question Answers

Below, we have provided the class 7 understanding markets question answers. This chapter explains how markets function and the process of buying and selling goods and services.

LET’S EXPLORE – Hampi Bazaar

Q1. Can you imagine what this bazaar must have looked like during its peak?

Answer:
During its peak, the Hampi Bazaar must have been a very busy and prosperous place. Traders sold a wide variety of goods such as grains, milk, oil, silk, cotton cloth, precious stones, gold jewellery, animals like horses and cows, and even birds. The market attracted people from different regions and foreign countries. Craftsmen worked openly in the streets, and goods from farms and workshops were available in large quantities. The market reflected the wealth and importance of the Vijayanagara Empire.

Q2. Do you know of any old markets from your state? How are they similar or different from today’s markets?

Answer:
Old markets were mostly open-air markets where buying and selling happened through bargaining. Traders and buyers met face to face, and prices were flexible. Today’s markets include shops, malls, and online platforms where prices are often fixed. Modern markets have better storage, packaging, digital payments, and delivery services. However, both old and modern markets serve the same purpose—meeting people’s needs and wants.

LET’S EXPLORE – Buyer and Seller

Q3. What are these people discussing? Prepare a buyer–seller dialogue.

Answer:
They are discussing the price of guavas. The buyer wants to buy at a lower price, while the seller wants to sell at a profitable price.

Example Dialogue:
Buyer: “The guavas are fresh, but ₹80 per kg is too expensive.”
Seller: “I bought them at a high price. I can sell for ₹60.”
Buyer: “Please give them for ₹50.”
Seller: “Alright, ₹50 is fine.”

This shows negotiation, which is a common feature of markets.

THINK ABOUT IT – Negotiation

Q4. Can you think of a type of market where negotiation is less common? Why?

Answer:
Negotiation is less common in supermarkets, malls, and online markets. This is because prices are fixed and printed on the product or displayed on websites. These markets focus on convenience, standard pricing, and transparency rather than bargaining.

THINK ABOUT IT – Prices

Q5. Why are vegetables sold more cheaply late at night in weekly markets?

Answer:
Vegetables are perishable goods and can spoil quickly. By night, sellers want to clear their remaining stock rather than take it back or throw it away. To attract buyers, they reduce prices. This helps them recover some money instead of suffering a total loss.

Q6. Why do garment stores offer heavy discounts on woollen clothes at the end of winter?

Answer:
Demand for woollen clothes decreases after winter. To clear old stock and make space for new seasonal clothes, shops offer discounts. This helps sellers avoid unsold inventory and storage costs.

THINK ABOUT IT – Online vs Physical Markets

Q7. What are the pros and cons of online and physical shopping?

Answer:

Online Shopping:

• Pros: Convenient, wide variety, home delivery

• Cons: Cannot check quality physically, delivery delays

Physical Shopping:

• Pros: Can see and touch products, instant purchase

• Cons: Limited variety, travel required

Q8. Which services require physical markets?

Answer:
Services like tailoring, haircuts, medical treatment, plumbing, electrical repairs, and vehicle servicing require physical presence because they involve direct interaction and manual work.

LET’S EXPLORE – Wholesale and Retail

Q9. Describe the flow of goods from producer to consumer.

Answer:
Goods move from producers or manufacturers to wholesalers, who buy in bulk and store them in warehouses. Retailers then buy smaller quantities from wholesalers and sell them to consumers.
Flow: Producer → Wholesaler → Retailer → Consumer

LET’S EXPLORE – Energy Efficient Products

Q10. What happens when consumers demand energy-efficient refrigerators?

Answer:
Producers observe consumer demand and increase the production of energy-efficient refrigerators. This encourages sustainable production, reduces electricity consumption, and benefits both consumers and the environment.

LET’S EXPLORE – Market Traditions

Q11. Have you observed any practices beyond buying and selling?

Answer:
Yes. In many markets, sellers give a little extra quantity, offer free coriander, or give haldi-kumkum as a goodwill gesture. These traditions build trust and long-term relationships between buyers and sellers.

LET’S EXPLORE – Onion Prices

Q12. What happens to onion prices when supply decreases?

Answer:
When supply decreases and demand remains high, onion prices increase. This is due to scarcity in the market.

Q13. What should the government do in this situation?

Answer:
The government can release buffer stocks, import onions, regulate prices, and prevent hoarding to protect consumers.

THINK ABOUT IT – Quality Check

Q14. What qualities would you look for while buying marbles?

Answer:
I would check the size, weight, smoothness, strength, colour, and price of the marbles. Good quality marbles improve performance in the competition.

Q15. Why are BEE star ratings important?

Answer:
BEE star ratings show energy efficiency. Higher star ratings mean less electricity consumption, lower bills, and less environmental damage.

Understanding Markets Class 7 Questions Answers (BACK EXERCISE)

Q1. What are the main features of a market?

Answer:
The main features of a market are buyers and sellers, goods or services, price, negotiation or agreement, and exchange. Markets can be physical or online and help people meet their needs and wants.

Q2. Explain the relevance of Adam Smith’s quote.

Answer:
Adam Smith’s quote highlights that markets allow people to access goods and services they cannot produce themselves. This exchange leads to prosperity and economic growth.

Q3. How will farmers respond if guava prices rise?

Answer:
Farmers will grow more guavas next season to earn higher profits. They will consider market demand while planning production.

Q4. Match the markets

Q5. Why are some products expensive despite low demand?

Answer:
Some products are costly due to high production cost, rarity, skilled labour, or luxury value, such as artwork, gold jewellery, or designer goods.

Q6. Why did the family buy costlier beans from a supermarket?

Answer:
The supermarket offered clean packaging, fixed prices, convenience, hygiene, and trust, which influenced their decision beyond price.

Q7. Why do farmers throw away tomatoes? Role of wholesalers?

Answer:
Excess supply reduces prices below production cost. Wholesalers can help by storing, processing, transporting, or finding new markets to reduce wastage.

Q8. How is selling done in school fairs?

 Answer:
Students fix prices, advertise products, negotiate with buyers, and manage sales, learning real-life market skills.

Q9. Why do some products lack certification marks?

Answer:
Certification marks are compulsory only for specific categories. Some products do not require mandatory certification.

Q10. What should be on a soap label?

Answer:
A soap label should include ingredients, weight, manufacturer details, MRP, date of manufacture, expiry date, and safety instructions.

Benefits of Using NCERT Solutions Class 7 Social Science Chapter 12

Below, we have provided the NCERT Solutions Class 7 Social Science Chapter 12 Understanding Markets. Using these solutions helps students gain a clear understanding of how markets function, improve exam preparation, develop analytical skills, and boost confidence by providing concise, structured, and accurate answers to all chapter-related questions.

Comprehensive Understanding:

NCERT Solutions provide clear and detailed explanations of key concepts such as markets, buying and selling, price determination through demand and supply, and different types of markets. This helps students understand how markets operate and affect people’s daily lives.

Structured Answers:

The solutions are presented in a well-organized manner, with step-by-step answers to each question. This makes complex topics like wholesale and retail markets, online markets, and government regulation easier to understand and write in exams.

Enhanced Learning:

By covering all in-text questions and end-of-chapter exercises, NCERT Solutions reinforce learning and help students revise important concepts quickly. This strengthens memory retention and overall understanding of the chapter.

Develops Analytical Skills:

The solutions encourage students to think critically about real-life market situations, such as price changes, consumer choices, and the role of the government. This helps develop analytical and reasoning skills.

Time-Saving:

The answers are clear, accurate, and to the point, saving students time by providing reliable explanations without the need to search through multiple resources.