Market systems refer to the organized ways in which goods and services are exchanged in an economy. They involve various participants, including consumers, producers, and intermediaries, who interact to determine prices and allocate resources. Market systems can be influenced by factors such as supply and demand, competition, and government regulations. In a market system, prices act as signals to both buyers and sellers. When demand for a product increases, prices typically rise, encouraging producers to supply more. Conversely, if demand decreases, prices may fall, leading to reduced production. This dynamic helps ensure that resources are used efficiently within the economy.