Capitilism

The American way of life can commenly be seen by its dominant frameworks, one of these freameworks can be recognized as capitilism. There are many perspectives and aspects to capitilism. Many people may have their own opinion of capitilism but without known the fundamental way that captilism works then their is know way to form an opinion. The real/ official definition of capitilism is: an economic system in which goods and services are produced and distrubuted, and consumed through the mechanism of free makrekts. No one is able to really understand the basics of capitilism without the understanding of the three main ideas that forms capitilism. The three ideas are Land, Labor, and Capital. These three concepts are significant part of production of a product. For example, Land is the acutally "land" the product is grown on or manufactured on, the resources on the land used to grow the product. Labor is the work and people choosen to produce and sell the product being sold. And last is Captial which is the objects (things that arent for sale) used to make the porduct or promote the product such as signs, advertisment, etc. In Capitilism, there are many stratagies behind marketing and selling a product. Busniesses try to make as much money as possible while spending the least amout of money making the product and advertising the prodcut. This can be known as profit motive. Busniesses set the price of their porduct according to what is known as the market price. Market price is the highest price the seller of a product can set their product for yet at the same time thinking of the lowest price that the cosumers are willing to pay for the product. The market price is primarily based on suppy and demand, these aspects is what can shift the marker price. Supply is the total amount of prodcuts that are for sale. Demand is the total amount of products that the consumer will buy at a certain price. A graph is what usually is used to represent supply and demand. This is obviously known as the Supply and Demand chart. The points in where the line segment of supply and demand intersect is what the market price is. This is how many busniesses find their market price for their products. If there are some senarios such as the price of a prodcut were to become lowered, you must remember that the total amount of supply stays the same as it is the "quanitity" of the suplly that acutally makes a sudden change. This new price caused by the senario can be known as the Equilibrium Price. Another senario which can be known as a "shortage" is when there are people willing to pay the price to buy a product but there are not enough products to buy, not enough products for sale. Another idea that comes up is competitions between busniesses. If there is a free market than busniesses will most likely find themselves in a competitions between many other companys selling the same products. Competitors of a busniess try to sell cheaper than other companies with the same products to gain more consumers which gains more profit. Capitilism can be found everday in our dailey lives while shopping and trying to find the best price for certain things to working to pay off debts and having a standard life. Our lives can be known to be driven by the invisable hand. The invisable hand is like the automatic direction that life will continue to go towards. The invisable hand is what automatically gives you the motive to know what to do next in life. People can have the motive towards a better life and the invisable hand is what usually helps direct them.