utopia has a capitalistic, free market economy. In this type of economy, businesses
are privately owned. This allows individuals to earn a profit. The types of businesses are sole proprietorships, partnerships, and corporations. Sole proprietorships are businesses owned by only one person. In
a partnership, the profits are divided among the owners. Most corporations are
owned by shareholders. These stocks can be purchased in stock markets. Owners of a company’s stocks earn some of the profits that the company makes. Shareholders can also sell their stocks for profit. The utopian
economy encourages competition and monopolies are not allowed. Competition keeps
prices low. Prices are set by the consumers, not the government, through supply
and demand. As demand goes up, prices rise.
As supply goes up, prices fall.