254,505 views
31 votes
31 votes
What role does the law of supply and demand play in a command economy?

А.The law of supply and demand functions in reverse because a command economy is the opposite of a market economy.
B. The law of supply and demand applies to a command economy as much as it does to other economies.
C. The law of supply and demand does not apply because in a command economy, the government controls the market.
D. The law of supply and demand functions the same way as in other economies, but the government sets the prices.

User Maria Jane
by
3.3k points

1 Answer

13 votes
13 votes

Answer:

A.

Step-by-step explanation:

A. Is the correct answer because the more the demand the lower the price in a command economy due to economies of scale and government monopolies.

User Tunyk Pavel
by
2.7k points