Question

Justify the following statement.

The market can be classified on the basis of volume.

Answer 1

On the Basis of Volume of Transaction:

1. Wholesale Market: In the wholesale market, the activity of buying and selling goods is undertaken in large quantities at cheaper prices. Goods are sold to retailers who then sell them to the consumers. It refers to the market for bulk purchase and sale of goods. In such a market sellers are known as wholesalers and buyers are known as retailers.
2. Retail Market: Retail market is the market where the retailer sells goods directly to the consumer in small quantities.