Final answer:
In a command economy, the government replaces the law of supply and demand by making decisions on what goods and services will be produced, setting prices for them, and determining methods of production and wages for workers.
Step-by-step explanation:
In a command economy, the government replaces the law of supply and demand by deciding what goods and services will be produced, setting the prices for them, and determining the methods of production and wages for workers. Unlike in a market economy, where supply and demand determine prices and production, the government takes control of these decisions in a command economy. This means that the government has a significant influence on the allocation of resources and the distribution of goods and services.
For example, in Cuba and North Korea, which are command economies, the government determines the production of necessities like healthcare and education, and provides them for free to the citizens. This ensures that every citizen has access to these services, regardless of their ability to pay.