What would happen if market didn't exist?

Answer 1

If markets didn't exist, the allocation of resources would rely heavily on alternative systems such as central planning or barter, leading to inefficiencies and a lack of competition. Without price signals, it would be challenging to determine supply and demand, potentially resulting in shortages or surpluses of goods and services. Innovation might stagnate due to reduced incentives for businesses to improve and differentiate their offerings. Overall, the economy would likely become less dynamic and less responsive to consumer needs.