Prices Tend to Be Sticky Because

question 26

Multiple Choice

Prices tend to be sticky because

• A) firms are worried that frequent price changes would annoy consumers.
• B) most firms have agreements with each other to fix prices at profit-maximizing levels.
• C) government controls most prices.
• D) foreign competition discourages domestic firms from price changes.

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Definitions:

Concentrate

To focus one's attention or mental effort on a particular object or activity.

Pester Power

Refers to the influence children have over their parents' purchasing decisions through persistent requests or nagging.

Calorie-Dense Foods

Foods that contain a high amount of calories per serving, often leading to weight gain if consumed in excess.

Adults

Individuals who have reached the age where they are considered mature, often legally recognized as being responsible for their actions.