Explain the types of market on the basis of area covered and volume of transaction.

Answer: On the basis of area: local, regional, national and international markets. On the basis of volume of transaction: wholesale and retail markets.

A. On the basis of area covered:

1. Local market: Buyers and sellers are from the same locality; usually for perishable goods and daily necessities such as milk, vegetables and fruits.
2. Regional market: Covers a larger area such as a district or a group of districts or states, e.g. regional products and food grains.
3. National market: Goods are bought and sold throughout the country, e.g. tea, sugar, cloth and branded products.
4. International (global) market: Goods are bought and sold across countries through exports and imports, e.g. petroleum, gold, software.

B. On the basis of volume of transaction:

1. Wholesale market: Goods are bought and sold in large quantities, mainly between producers and wholesalers, or wholesalers and retailers, at lower prices.
2. Retail market: Goods are sold in small quantities directly to the ultimate consumers to satisfy their needs, at retail prices.