Answer:
Step-by-step explanation:
The sneaker resale industry is a prime example of capitalism at work, as it operates within the principles of a free market economy. In a free market, individuals and businesses have the freedom to buy, sell, and produce goods and services without government interference.
In the case of the sneaker resale industry, individuals and businesses buy sneakers at retail prices and then sell them at a higher price on the resale market. The demand for limited-edition and highly sought-after sneakers drives up the resale price, creating an opportunity for profit.
Capital plays a crucial role in this industry as individuals and businesses invest their money into buying sneakers with the intention of reselling them for a profit. The success of the reseller depends on their ability to make wise investment decisions, such as accurately predicting which sneakers will have a high resale value, and the ability to manage their capital effectively.
In conclusion, the sneaker resale industry demonstrates the principles of capitalism, such as the operation within a free market and the use of capital to make a profit.