What Are Sticky Prices or Wages, and How Can Contracts

question 86

Essay

What are sticky prices or wages, and how can contracts make them 'sticky'?
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Definitions:

Supply Chain

A system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Physical Distribution

The activities concerned with the efficient movement of products from the producer to consumers, including storage and transportation.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Price Elasticity

A measure of how sensitive the quantity demanded of a good or service is to a change in its price.