Capitalism is defined by:
- the means of production (factories, tools, employees, land,..)
- being owned privately (as opposed to being state owned)
- for profit (so you do not have to live paycheck to paycheck)
A free market is defined by:
- price of goods is set by supply and demand
- the government doesn't intervene (for example through subsidies)
Price fixing is defined by:
- all the sellers (or buyers) agreeing on and therefore setting the price
- price is not set by supply and demand, therefore you do not have a free market
Capitalism is defined by:
- the means of production (factories, tools, employees, land,..)
- being owned privately (as opposed to being state owned)
- for profit (so you do not have to live paycheck to paycheck)
A free market is defined by:
- price of goods is set by supply and demand
- the government doesn't intervene (for example through subsidies)
Price fixing is defined by:
- all the sellers (or buyers) agreeing on and therefore setting the price
- price is not set by supply and demand, therefore you do not have a free market