All the Following Explain Price Stickiness Except

question 12

Multiple Choice

All the following explain price stickiness except

• A) firms choose not to adjust prices until they can assess if changes in sales are temporary or permanent.
• B) the more firms produce, the lower the average cost of production. Therefore, firms are willing to not raise prices as long as they can sell more.
• C) firms may be concerned that consumers may be angered by price increases.
• D) firms may be concerned that their rivals may not match their price increases.

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Definitions:

Mortgage

A legal agreement in which property is used as collateral for the repayment of a loan.

Right of Contribution

The right that allows a party who has paid more than their share of a joint obligation to recover the excess paid from other parties responsible for the obligation.

Cosureties

Parties who jointly agree to share the responsibility for someone else's obligation, typically in a surety bond or loan guarantee.

Surety

A person or entity that takes responsibility for another's performance of an undertaking, such as fulfilling a contract or making a payment.