Private Property

It consists of items of value that individuals have the right to own, use, and sell. Thus, individuals can control productive resources. This creates a chain reaction between individuals and companies.

Price setting

Two factors: Demand and Supply

Demand: a principle that describes a costumer's desire and willingness to pay a price for a specific good or service.

Supply: a concept that describes the total amount of a specific good or service that is available to the costumers. This relates closely to the demand for a good or service at a specific price; all else being equal, the supply provided by producers will rise if the price rises because all firms look to maximize profits.

Chapter 8.3 Fundamentals of Capitalism