Answered

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



Answer :

GinnyAnswer

Final answer:

In a command economy, the law of supply and demand still applies, guiding production, distribution, and pricing decisions.


Explanation:

The law of supply and demand applies to a command economy as much as it does to other economies. In a command economy, the government still needs to consider the basic principles of supply and demand to make decisions about production, distribution, and pricing.

For example, even though the government controls the market in a command economy, if there is high demand for a certain product, the government may need to increase production to meet that demand.

Ignoring the principles of supply and demand in a command economy can lead to inefficiencies and potential imbalances in the economy.


Learn more about Supply and demand in a command economy here:

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