Final answer:
A market requires individuals and firms willing and able to buy goods, operating under a system where prices are set by demand and supply. In a market economy, competition and adequate information are crucial for efficient market functioning.
Step-by-step explanation:
A market cannot exist without individuals and firms that are willing and able to buy a good. This is a fundamental aspect of a market economy, where the existence of a market is predicated on the willingness and ability of individuals and firms to participate in buying and selling activities. In a pure market economy, there is no government intervention, and the prices are determined by the natural forces of demand and supply. For a functional market, competition is essential, as it drives buyers to offer higher prices and sellers to provide better or cheaper goods and services. Furthermore, all participants must have access to adequate information, and resources must be able to move freely to maintain the market's efficiency.