When Inflation Pushes Up Prices in the Economy,input Prices Are

question 119

Multiple Choice

When inflation pushes up prices in the economy,input prices are ________ and revenues ________ in the short run.

• A) flexible; remain unchanged
• B) sticky; increase
• C) sticky; remain unchanged
• D) flexible; decrease
• E) flexible; increase

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Definitions:

Discretionary Income

The money that remains after paying for taxes and necessities.

Disposable Income

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

Market Segmentation

The strategy of dividing a broad target market into subsets of consumers with common needs or characteristics, targeting each with a specific marketing mix.

Organizational Markets

Markets consisting of companies, governments, and institutions that purchase goods and services for operations, production, or resale purposes.