Capitalism is an economic system that is based on the principles of free markets, private ownership of property and the pursuit of profit. Under capitalism, individuals and businesses are free to produce and trade goods and services, with the aim of generating income and accumulating wealth.

In a capitalist system, the value of goods and services is determined by the market, which is driven by supply and demand. Individuals are free to produce and trade goods and services, and the market determines the value of those goods and services based on how much people are willing to pay for them. The more valuable a good or service is perceived to be by the market, the higher its price will be.