Final answer:
A market is a system that allows people or companies to buy and sell products and services, influenced by supply and demand, within a market economy characterised by private ownership and decision-making.
Step-by-step explanation:
The system that allows people or companies to buy and sell products and services is known as a market. In a market, there is an interaction between potential buyers and sellers, and this combination of demand and supply determines the range of transactions that occur.
Specifically, the market economy is a type of economic system where decisions are decentralized, meaning they are made by private individuals and businesses based on demand, rather than by a central government. Factors such as supply and demand influence the equilibrium price, which is the price at which the quantity supplied matches the quantity demanded. In a market economy, there's often a condition of pure competition, where many producers supply the same product with very few barriers to entry in the market.