As in capitalist economy ,the resources are under the control of private individual

Capitalist Economy

A capitalist economy is a system of economy in which all the means of production are owned and controlled by the private individuals for the purpose of profit. In this type of economy, the government plays a minimal role and the market forces of demand and supply determine the prices and production of goods and services.

Private Ownership

In a capitalist economy, private individuals or companies own and control the means of production, such as factories, land, and resources. This means that they have the right to use these resources to produce goods and services for profit. The government does not own or control these resources.

Profit Motive

The main goal of individuals and companies in a capitalist economy is to make a profit. This means that they will produce goods and services that are in demand and that they can sell at a price that is higher than the cost of production. The profit motive is what drives innovation, competition, and growth in a capitalist economy.

Market Forces

In a capitalist economy, the prices of goods and services are determined by the market forces of supply and demand. When demand for a product is high, the price will go up, and when demand is low, the price will go down. Similarly, when there is a shortage of a product, the price will increase, and when there is an oversupply, the price will decrease.

Minimal Government Intervention

In a capitalist economy, the government plays a minimal role and does not interfere with the market forces of supply and demand. The government's main role is to protect property rights, enforce contracts, and ensure that competition is not restricted.

Conclusion

In conclusion, a capitalist economy is a system of economy in which all the means of production are owned and controlled by the private individuals for the purpose of profit. This type of economy is characterized by private ownership, the profit motive, market forces, and minimal government intervention.