Which of the Following Is Not a Factor That Increases

question 70

Multiple Choice

Which of the following is not a factor that increases short-run price stickiness?

• A) Consumers tend to prefer stable prices.
• B) Stable prices make it easier for consumers to plan their spending.
• C) A firm can lower its price without fear that rival firms will also lower their prices.
• D) Firms try to avoid price wars.

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Definitions:

Entrepreneurship

The act of creating, designing, and running a new business, often initially a small business, offering products, processes, or services for sale or hire.

Emancipated Minor

A legal status granted to individuals under the age of 18, allowing them to enjoy adult rights and responsibilities due to certain circumstances.

Ratification

The principal’s approval of an unauthorized act performed by an agent or by one who has no authority to act as an agent. Also, an approval of a contract made by a minor after reaching maturity.

Contractual Obligation

A legal duty that arises out of a contract, requiring a party to either perform or refrain from performing certain acts.