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This new class, the middle class, consisted of merchants, traders, and artisans. As feudalism declined, capitalism surfaced. Capitalism is based on trade and a standard called supply and demand. If the demand for a product is high, the price raises and the workers make a larger profit. On the downside, if the demand is low, so are the price and wages. The reason why the commercial revolution is such a turning point is because it restructured medieval society. Feudalism declined, so the lords needed money to buy goods, which they bought from peasants. This changed the way government worked because instead of peasants paying with labor, they were paying with money...
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