What alternative exists to price system What challenges does this alternative present?

An alternative to the price system is a command economy, where the government makes decisions about resource allocation and production. This system can lead to inefficiencies, as it may not accurately reflect consumer preferences or demand, resulting in shortages or surpluses. Additionally, it can stifle innovation and competition, as central planners may lack the necessary information to make optimal choices. Overall, while a command economy can ensure equitable distribution, it often struggles with responsiveness and flexibility compared to market-driven systems.