What is the definition of a market?

A market is defined as any arrangement that allows buyers and sellers to exchange things. This definition encompasses a wide range of scenarios where trade takes place, whether it's in physical locations like retail stores or marketplaces, or through digital platforms such as online websites. The essence of a market is the interaction between buyers who have the demand for goods or services and sellers who supply those goods or services.

Other alternatives do not capture the broad and fundamental notion of what a market is. For example, while an organization regulating prices may have some influence on markets, it does not define a market itself. Additionally, a place where products are manufactured refers specifically to production rather than the exchange that defines a market. Similarly, a system for managing economic resources could describe various economic structures but does not specifically pertain to the direct exchange interactions that characterize a market. The focus on exchange in the correct answer highlights the fundamental economic activity that drives markets.