Question

which situation is more likely to occur in a market economy than a command economy.  how does the use of plastic to produce bicycle helmets affect other plastic-using industries?   

Answer 1

Answers:

• An inventor designs and produces a new type of car.
• It decreases the amount of resources available to other industries.

A market economy is one which fluctuates based on the laws of supply and demand. A command economy, on the other hand, is one which is manipulated and controlled by the government. Command economies, due to being planned, are less likely to lead to innovation, as profits are often not an incentive. Therefore, a new type of car created by an inventor is more likely to arise on a market economy.

Theoretically, if a company is using plastic to create its products, this could reduce the amount of resources that is available to other industries, although the amount is probably negligible.