Which of the Following Is an Explanation for Price Stickiness

question 69

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

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Definitions:

Collective Unconscious

A concept in psychology referring to the part of the unconscious mind containing memories and impulses shared among humankind.

Analytical Mind

The capability to critically analyze information, solve problems through logical reasoning, and evaluate ideas.

Archetype

In psychology, a universally understood symbol or pattern of behavior, often derived from myths and collectively inherited unconscious.

Supraordinate

An overarching or superior category or classification that encompasses more specific items related to a broader concept.