Command economies, as in the former Soviet Union, often have terrible shortages of common consumer goods like bathroom tissue. How do market economies usually avoid such terrible shortages? In command economies, incompetent leaders make foolish decisions while market economies have smarter leaders Command economies plan their production so that there will be some shortages. In market economies, consumers learn not to want things that are not supplied, so there can never be a real shortage in a market economy. In market economiesshortages push prices up leading to a greaterquantity supplied

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Javier Romero

6 July, 13:14

Command economies, as in the former Soviet Union, often have terrible shortages of common consumer goods like bathroom tissue. How do market economies usually avoid such terrible shortages? In command economies, incompetent leaders make foolish decisions while market economies have smarter leaders Command economies plan their production so that there will be some shortages. In market economies, consumers learn not to want things that are not supplied, so there can never be a real shortage in a market economy. In market economiesshortages push prices up leading to a greaterquantity supplied

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Ahmad Monroe · Answer 1

"In market economies shortages push prices up leading to a greater quantity supplied" is the correct response. Although this does not always go smoothly, and there may be lags.