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The difference between a command economy and a demand economy?
Wiki User
∙ 15y ago
A command economy is a private business that the government does not support. It is purely driven by consumers. They decide on what is produced.
A demand economy is a business where only the government decides what is produced.
There is also something called a mixed economy and that is when the government supports private businesses and decides what is produced for them.
Wiki User
∙ 15y ago
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How does a command economy respond to consumer demand?
Command economy, due to the imperfect market it always creats, it shall always supply economic goods(scarcity) in the market to alow high demand, hence monopoly of the market.
Explain Why the law of demand can apply only in a free market economy?
The law of demand is that, all other factors held constant, the quantity of a good demanded increases as the price of that good falls. In a command economy, unlike a free market economy, it is the govenment, not market supply and demand,that determines prices.
What are the characteristics of command ecomy?
There are a few main characteristics of a command economy. These include having the government make decisions about which sections produce what products, the demand being based on the decision of the market economy, and the pricing being decided by the government.
What is the difference between a term security and a demand security?
distinguish between a term security and a demand security
Is economy part of culture?
Well technically yes. In a traditional economy, products are produced according to theway ancestors made things or in 'traditional' ways with no regard to governmental control (Command economy) or supply and demand (Market economy).
What is a major aspect of a command economy?
Supply and demand determines what will be produced.
How does a command economy respond to consumer demand?
Command economy, due to the imperfect market it always creats, it shall always supply economic goods(scarcity) in the market to alow high demand, hence monopoly of the market.
In a command economy which factor answers the question of what to produce?
government decisions
Difference between elastic and inelastic demand?
difference between elastic and inelastic demand
Why can't income replace price in law of demand?
In a command economy, supply and demand are replaced by government edicts. However, the national economy can still fail, as happened in the USSR.
Explain Why the law of demand can apply only in a free market economy?
The law of demand is that, all other factors held constant, the quantity of a good demanded increases as the price of that good falls. In a command economy, unlike a free market economy, it is the govenment, not market supply and demand,that determines prices.
What are the characteristic of command?
There are a few main characteristics of a command economy. These include having the government make decisions about which sections produce what products, the demand being based on the decision of the market economy, and the pricing being decided by the government.
What are the characteristics of command ecomy?
There are a few main characteristics of a command economy. These include having the government make decisions about which sections produce what products, the demand being based on the decision of the market economy, and the pricing being decided by the government.
What is the difference between a term security and a demand security?
distinguish between a term security and a demand security
Is economy part of culture?
Well technically yes. In a traditional economy, products are produced according to theway ancestors made things or in 'traditional' ways with no regard to governmental control (Command economy) or supply and demand (Market economy).
How does a command economy differ from a market economy?
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
What is the difference between demand and exchange?
Demand is to ask for something forcibly. Exchange is to trade.
