Capitalism is an economic system where private individuals own and control property and businesses. Socialism is an economic system where the means of production are owned and controlled by the state or public. Capitalism emphasizes individual freedom, profit motive, and market competition. Socialism emphasizes social welfare, equal distribution of resources, and state planning. In capitalism, prices are determined by market forces, while in socialism, prices may be regulated by the state.
Capitalism emphasizes individual freedom, profit motive, and market competition. In capitalism, prices are determined by market forces, while in socialism, prices may be regulated by the state. The law of supply states that, ceteris paribus, as price rises, quantity supplied rises. Socialism emphasizes social welfare, equal distribution of resources, and state planning. The law of demand states that, ceteris paribus, as price falls, quantity demanded rises.