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:

Depression

A mood disorder marked by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Acupuncture

A traditional Chinese medicine technique involving the insertion of very thin needles through the skin at strategic points on the body, commonly used for pain relief.

Brain Changes

Alterations in the structure, function, or chemistry of the brain, which may occur due to development, aging, disease, or environmental influences.

Pain Relief

Methods or treatments used to reduce or alleviate discomfort and pain in individuals.