Reasons Advanced for the Rigidity of Prices to Changes in Demand

question 49

Multiple Choice

Reasons advanced for the rigidity of prices to changes in demand but not changes in costs include

• A) limitations on the information firms can collect and process.
• B) long-term purchasing contracts that fix large components of the cost equation for long periods of time.
• C) the managerial simplicity of stable prices.
• D) the workings, legal and otherwise, of imperfectly competitive markets.
• E) all of the above.

---

Definitions:

Arrhythmia

An irregular heartbeat, which can feel like a racing heart or fluttering, and can be harmless or a sign of a serious heart condition.

Ventricular Flutter

A rapid heart rhythm originating from the ventricles, characterized by a heart rate of 200 to 250 beats per minute, which can be life-threatening.

I49.01

I49.01 is a medical classification code for Ventricular Fibrillation, an irregular heart rhythm disorder.

Epicardium

The outermost layer of the heart wall, also part of the pericardium.