Which economic system does not rely on supply and demand principles?

The command economy is characterized by centralized decision-making, where the government or an authoritative body controls the production and distribution of goods and services. In this system, the government determines what to produce, how much to produce, and the prices at which goods and services are sold, rather than allowing these factors to be dictated by supply and demand dynamics found in market economies.

In contrast, a market economy operates based on the principles of supply and demand, where prices and production levels are determined by the interactions of consumers and producers in an open market. Capitalist economies also rely heavily on these market principles, promoting competition and individual entrepreneurship. Traditional economies, while not strictly modern, are often rooted in historical customs and practices, leveraging barter and trade rather than a reliance on market pricing influenced by supply and demand.

Therefore, the unique aspect of a command economy is its departure from these market-driven principles, demonstrating how economic control by the government can shape the economic landscape distinctively.