Which of the Following Is an Explanation for Price Stickiness

question 119

Multiple Choice

Which of the following is an explanation for price stickiness?
I. There are adjustment costs associated with changing prices such as the cost of printing new price lists.
II. Worker unions may forbid firms from raising prices for fear that workers may be laid off if demand for output falls.
III. Firms may have explicit long-term contracts to sell their products to other firms at specified prices.

• A) I only
• B) I and II only
• C) I and III only
• D) I, II, and III

---

Definitions:

Microsoft Account

A unified credentials system from Microsoft that provides access to a wide range of services and devices.

OneDrive

A cloud storage service provided by Microsoft that allows users to store files and data online for access from any device.

Microsoft Office Online

A web-based version of Microsoft's Office suite of productivity applications, allowing users to create, edit, and share documents online.

Gesture

A movement or position of the hand, arm, body, head, or face that is expressive of an idea, opinion, emotion, or action.