In common economics, as in the former soviet union often have terrible shortages of common consumer goods like bathroom tissues. how do market economies usually avoid such terrible shortages?

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Abdiel Mcdonald

Business

10 July, 06:51

In common economics, as in the former soviet union often have terrible shortages of common consumer goods like bathroom tissues. how do market economies usually avoid such terrible shortages?

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Rohan · Answer 1

In command economies such as the Soviet Union, the government decides how many goods and services will be produced, which usually leads to surpluses. Market economies rely on supply and demand, which means that only the amount of a good demanded will be supplied.