How is a market economy different from a command economy? The interaction of supply and demand sets prices in a market economy, while the government sets prices in a command economy.

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.

Producers benefit the most from a market economy, while consumers benefit the most from a command economy.

Natural resources are most important in a market economy, while labor and capital are most important in a command economy.