2006-08-25 05:37:59 · 6 answers · asked by chirag p 1 in Politics & Government ➔ Other - Politics & Government
Capitalism means all property is in private hands. True Capitalism is yet to exist in mankind's history (Perhaps someday.)
Prices are determined when property owners exchange their property with one another.
Prices arise from these exchanges.
If I trade my 1 apple for your 1 orange, an exchange between two private property owners has taken place.
As a result, we can say that the price of 1 apple is 1 orange...and conversely the price of 1 orange is 1 apple.
Let's say that you don't like apples, but you'll accept dollars instead. And let's say that I trade my $1 bill for your orange. The price of 1 orange is $1.
This does not mean that 1 orange = 1 dollar. After all, across the street someone may exchange 1 orange for $2. So there is no equality between the two items.
It just means that, at a certain place and time, the PRICE of 1 orange was $1.
If you're interested in Capitalism, I highly recommend checking out The Mises Institute website:
http://www.Mises.org
And I recommend a great book for beginners:
"Economics for Real People," by Gene Callahan
You can read the book online for free below:
www.mises.org/books/econforrealpeople.pdf
2006-08-25 15:45:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Capitalism means the private ownership of the means of production. The market decides the price--what people are willing to pay meets what people want to charge. Its a basically good system but it requires competition to function right, so it actually needs regulation to make sure there is competition, that it does not degenerate into a bunch of monopolies. Conservatives have a tough time understanding this, but its true.
2006-08-25 12:42:00 · answer #2 · answered by jxt299 7 · 0⤊ 0⤋
Simply put, supply and demand.
Vendors will price their goods in a proportional scale to the amount of demand placed upon that good by the public.
If there is a lot of demand for a product, the price will likely rise, as people are willing to pay more.
2006-08-25 12:40:52 · answer #3 · answered by Soy 3 · 0⤊ 0⤋
Simple demand if some one wants something they Will pay more for it. PS@ comes out around Christmas and sold on eBay 400 to 500 dollars, now you can get one for 80 bucks plus PS3 is coming out soon.
Everyone will want it and its price will fly high,
same as gas the more people want and consume it the more it cost.
2006-08-25 12:43:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It's simple. You owe us 15 bucks for every capital letter you use. Your tab so far is 30 bucks. LOL
2006-08-25 12:40:30 · answer #5 · answered by gokart121 6 · 0⤊ 0⤋
supply and demand
2006-08-25 12:59:41 · answer #6 · answered by W E J 4 · 0⤊ 0⤋