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Which economic system is characterized by supply and demand, investment capital and competition

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User Adebayo
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2 Answers

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Capitalism created by Adam Smith
2 votes

Answer:

Capitalism

Step-by-step explanation:

Capitalism is the economic system characterized by the production and commercialization of goods and services. The production is made from the investment in productive capital, which aims to transform an input into an end product that will be offered in the competitive market. This production, which represents supply, is driven according to demand. When there is great demand, production increases and when demand decreases, production also decreases. This leads one to believe that there is in the capitalist economy a point of equilibrium where the supply and demand for a good or service equals. This equilibrium point is reached according to the competitive mechanisms of the supply and demand of a market economy, where companies compete with each other via prices.

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User Urcm
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