Capitalism is a system where resources and production are privately owned, citizens are supposed to make a profit for themselves, and success or failure of an enterprise is determined by free-market competition.
The main goal is to narrow the gap between the rich and the bourgiouse. In socialism they try to get all the poorer people to sell their products to close the gap. As one supplies richer people give them their money to even the playing evens out and the work is all done for the people
Socialism calls for putting the major means of production in the hands of the people. They do this directly or by using the government. Socialism also believes that wealth and income should be shared more equally among people. Socialists do not believe that the workers will overthrow capitalists suddenly and violently. They also don't believe that all private property should be eliminated.
Through supply and demand, markets generally reach an equilibrium with price and quantity, where suppliers and consumers reach a compromise. Too high prices leads to low sales, and the chance loss. Demanding low prices may lead to no purchases, and unsatisfied wants. The differences in price from supply is called "Elasticity" In a capitalist economy, supply and demand regulate the quality and quantity of goods and help keep the price at a level reflecting the desire for the good
In capitalism, the prices of goods and jobs are highly impacted by the interaction of the market forces of supply and demand. If there are only a limited stock of some product available, competition with possible buyers tends to see prices rise, as consumers bid higher prices. Similarly, competition between sellers of the product tends to see prices fall, as they try to attract buyers. Similar to websites like ebay
They used central planning like letting government departments set targets for production, specify what is to be produced, prioritize production. They worked on production according to their importance to the items importance to the government. They also procure certain products like agricultural products. communist countries and supply and demand wouldnt exist. Production and distribution would be to each according to the leader.
There is no definite supply and demand in communism. The communist countries that existed in the postwar world, didnt employ market mechanisms (supply and demand) for production and distribution of goods.