Wool drops a point in the market (5)
I believe the answer is:
agora
'market' is the definition.
(agora is a kind of market)
'wool drops a point' is the wordplay.
'wool' becomes 'angora' (I've seen this before).
'drops' is a deletion indicator.
'a point' becomes 'n' (N is an example).
'angora' with 'n' taken away is 'AGORA'.
'in the' is the link.
(Other definitions for agora that I've seen before include "Ancient Greek assembly place" , "Place to gather" , "11 [LOLLY] to Ben-Gurion" , "Classical marketplace" , "Marketplace in ancient Greece" .)