Capitalism is an economic system based on investment of money for profit.
More exploration led to more trade, which gave people money to invest in companies.
Once people had more money, they could buy and sell more things.
If many people wanted a particular product and there was avery supply of it, then it would cost more.
A market economy happens when prices are determined by supply and demand.
Merchants would hire people to work in their own homes.
Many things were created this way-this was called Cottage Indastries..
Some countries thought that if they saved money, they would gain more power.
Whatever they sold, they would increase the price. Whatever they bought, they lowered the price.
Europeans had colonies in other places to get more money.