Market mechanisms are the processes that determine how goods and services are bought and sold in an economy. They rely on the forces of supply and demand, where the price of a product is influenced by how much of it is available (supply) and how much people want it (demand). When demand increases, prices tend to rise, encouraging producers to supply more. Conversely, if demand falls, prices may drop, leading to less production. These mechanisms help allocate resources efficiently, ensuring that products reach those who value them most. For example, in a competitive market, consumers can choose from various products, while producers strive to meet their needs effectively. This dynamic interaction fosters innovation and improves overall economic welfare.