Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 2 - The Market System and the Circular Flow - Discussion Questions - Page 49: 10

Answer

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Work Step by Step

A market economy is driven by supply and demand, which sets a price that is optimal for both the consumer and the producer. However, in a command economy, a central governing agency determines the prices.
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