Aarav buys something from a shop for ₹50

Why

Aarav is seeing only the last step — money leaving his hand and reaching the shopkeeper — and treating that whole amount as gain. But the thing he bought travelled a chain to get to the shelf. The shopkeeper bought it from a wholesaler for less than ₹50; the wholesaler bought it from the producer for less still; the producer paid for materials and labour. Each of them keeps only the gap between what they paid and what they charged. And out of the shopkeeper's gap come rent, electricity, the cost of getting stock to the shop, and items that spoil or never sell — the actual profit is what is left after all that. Test it: ask the shopkeeper what they paid the wholesaler for that same item — the difference between that and ₹50 is their margin, and it is usually a few rupees, not fifty. His sister is right: the ₹50 is divided along the producer-to-shop chain, and the shopkeeper's profit is a small part of it, not the whole thing.