A market is defined as:

• A. a physical location where only producers meet to discuss supply
• B. a place or system where buyers and sellers interact to exchange goods and services
• C. a government agency that regulates prices and production
• D. an organization that sets the rules for international trade

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definition of a market in microeconomics. A market is not limited to a physical location; it broadly refers to any arrangement or system where buyers and sellers interact.
2. Step 2: Recognize that the key function of a market is to facilitate the exchange of goods and services between buyers and sellers, which can happen in person, online, or through other means.
3. Step 3: Eliminate options that do not fit this definition: a market is not just a place where producers meet, nor is it a government agency or an organization that sets trade rules.
4. Step 4: Identify the correct definition as the option that describes a market as a place or system where buyers and sellers interact to exchange goods and services.
5. Step 5: Conclude that the market concept in microeconomics emphasizes interaction and exchange, which is fundamental to understanding supply, demand, and price determination.