In a Study of Whether Prices Are Sticky or Not,Alan

question 44

Multiple Choice

In a study of whether prices are sticky or not,Alan Blinder supervised interviews of corporate executives on the frequency with which their firms change prices and found that

• A)55 percent of firms changed prices only once a year or less.
• B)over 20 percent of the firms changed prices more than 12 times per year.
• C)10 percent of companies changed prices 4 to 12 times per year.
• D)there is not a considerable departure from auction-market behavior.

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Definitions:

Children

Young human beings before they reach puberty, characterized by rapid physical growth and mental development.

Teenagers

Individuals who are in the age group of 13 to 19 years old, navigating the transition from childhood to adulthood.

Status Quo Bias

A cognitive bias that causes people to prefer things to stay the same by doing nothing or by sticking with a decision made previously.

Decision-Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving elements of judgment and reasoning.