THE ESSENCE AND FUNCTIONING OF THE MARKET ECONOMY

This article examines the economic essence, institutional foundations, and operational mechanisms of the market economy. It analyzes the interaction between supply and demand, price formation, competition, private property, entrepreneurship, and government regulation. Particular attention is given to market efficiency, resource allocation, economic growth, income distribution, and the challenges associated with market failures. Using international economic statistics, analytical formulas, and comparative indicators, the study evaluates the functioning of market mechanisms and their contribution to sustainable economic development. The findings emphasize that an effective market economy requires institutional stability, competitive markets, financial accessibility, and appropriate public regulation.