how does a command economy differ from a free market economy 
in a free market economy private enterprises determine their levels of production in response to the law of supply and demand in a command economy the decision is dictated by government few free market economies today operate entirely on the principle of laissez faire a government may use public policies and regulations to encourage the production of a product such as fuel efficient cars some command economies have loosened their control china s economic boom did not begin until it created its own blend of socialist ideology and capitalist enterprise 3