How is a market economy different from a command economy?
A) Producers benefit the most from a market economy, while consumers benefit the most
from a command economy.
B) A market economy is one in which producers use traditional methods to make goods,
while a command economy is one in which innovation and change are more common.
C) The interaction of supply and demand sets prices in a market economy, while the
government sets prices in a command economy.
D)Natural resources are most important in a market economy, while labor and capital are
most important in a command economy.

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Option (C).

Explanation: In a market economy , the prices for a commodity or service is determined by the equilibrium of demand of demand and supply. The point at which the demand meet supply is called equilibrium price. While the government sets prices of goods and services in a command economy.

A command economy Is a system where the government owns the means of production and economic activity is controlled by the government. The government assigns production goals in terms of physical units and allocates physical quantities of raw materials to enterprises. In contrast free market economy is a system of government in which the prices for goods and services are self regulated by the open market and the by the consumers. It is solely based on demand and supply with little or no government control.

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