Competition drives efficiency, lowers prices, and improves product quality, while innovation leads to technological advancements and new market opportunities.

Market systems often struggle with income inequality, requiring policies like progressive taxation and social programs. Externalities are managed through regulations, taxes, or incentives for sustainable practices.

Advantages: Efficiency, consumer choice, innovation, and economic growth.

Disadvantages: Income inequality, market failures, exploitation of resources, and instability during downturns.

Governments regulate markets to prevent monopolies, protect consumers, ensure fair wages, and address externalities. However, excessive intervention can reduce efficiency and limit business growth.

Consumers drive demand by making purchasing decisions based on price, quality, and preferences.

Producers supply goods and services, responding to demand and competition while seeking profit.

Globalization expands markets, increases competition, lowers prices, and encourages economic integration, but can also lead to job displacement and dependency on global supply chains.

Market systems often prioritize profit over sustainability, leading to overconsumption and pollution. Solutions include green policies, corporate social responsibility, and incentives for eco-friendly practices.