Price Stickiness Refers To

question 131

Multiple Choice

Price stickiness refers to:

• A) when prices are slow to adjust to economic shocks.
• B) when prices of goods and services respond to the stock market.
• C) when firms raise their prices as soon as they hear bad news.
• D) when prices are controlled by government regulations.

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Definitions:

Federal Government

The national government of a country, which holds the highest level of authority over its territories and functions.

Demand Curve

An illustrative chart demonstrating the connection between the cost of a commodity and the consumer demand for it.

Beatles' Compact Discs

A specific example of a product, referring to the compact discs (CDs) that contain music by the Beatles.

Phil Collins

A British musician and actor known for his solo career and as the drummer and lead singer for the rock band Genesis.