Prices and Markets
Class 7 Social Science · Chapter 12: Understanding Markets · NCERT Exploring Society: India and Beyond section 12.2
Learn
At a guava cart, the seller asks ₹80 per kg. Buyers find it too high and walk away; guavas go unsold. Next day he drops to ₹20: everyone wants guavas, they sell out quickly, but he makes a loss. Over time the price settles at about ₹40, high enough for the seller, low enough for buyers. By watching how many guavas buyers want at each price, the seller learns how many to bring next time.
The amount buyers are willing and able to buy at a price is demand; the amount sellers are willing and able to sell is supply. Their interaction sets the price. That is why vegetables get cheaper late at night (sellers clear perishable stock), winter clothes are discounted at the end of winter, and onion prices rise when supply falls.
Explore: what happens to the price?
- Sort each situation.
Remember
- Buyers and sellers bargain to reach a mutually agreeable price.
- Demand and supply together determine prices.
Quick check
If a seller sets the price very low, …
- many buy but he may make a loss
- no one buys
- the government closes the market
- prices stay fixed forever
Answer
many buy but he may make a loss. A just-right price suits both buyer and seller.
Think about it
Why might a family pay more for packed beans at a supermarket than for loose beans from a cart?
One answer
Convenience, cleanliness, fixed prices without bargaining, buying everything in one place, or trust in quality can matter as much as price.
Practice
Practise with fresh questions at three levels (easy, medium, hard), some answered hands-on, with hints and worked answers. Get 4 of your last 5 right to finish the topic.