A Command Economy Eliminates Markets

question 174

True/False

A command economy eliminates markets.

---

Definitions:

Demand Function

A mathematical equation that describes the quantity of a good that consumers are willing and able to purchase at various prices.

Subsidy

Financial assistance granted by a government or other institution to lower the cost of producing goods or services or to support consumers directly.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in its price, with elasticity greater than one indicating a high sensitivity to price changes.

Supply Elasticity

A measure of how much the quantity supplied of a good changes in response to a change in price.