What is conventional market system?

Answer 1

A conventional market system, also known as a traditional market economy, is an economic structure where goods and services are produced and exchanged based on established customs and practices. In this system, decisions about production, distribution, and consumption are primarily influenced by historical traditions and social norms rather than by government intervention or market forces. Markets operate on the principles of supply and demand, but they often rely on barter and face-to-face transactions. This system is commonly found in rural or less industrialized areas where modern economic practices have not fully developed.