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What role does the law of supply and demand play in a command economy?

A. 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 functions the same way as in other economies, but the government sets the prices.
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 applies to a command economy as much as it does to other economies.

Sagot :

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Final answer:

In a command economy, the government sets prices and controls the market rather than relying on the law of supply and demand.


Explanation:

In a command economy, the law of supply and demand does not apply in the traditional sense as the government controls the market. Instead, the government sets the prices and dictates the distribution of goods and services based on centralized planning. This system contrasts with a market economy where prices are determined by supply and demand interactions.


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