According to the Sticky Price Theory, Which of the Following

question 229

Multiple Choice

According to the sticky price theory, which of the following is consistent with an unexpected fall in the price level?

• A)Some firms' prices are lower than desired, which increases their sales.
• B)Some firms' prices are lower than desired, which depresses their sales.
• C)Some firms' prices are higher than desired, which increases their sales.
• D)Some firms' prices are higher than desired, which depresses their sales.

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Definitions:

Speciation

The evolutionary process through which new biological species arise due to the divergent evolution of populations that become reproductively isolated from each other.

Dominance

In genetics, the phenomenon where one variant of a gene (allele) masks or overrides the expression of a different allele at the same locus.

Recessive Allele

An allele that produces its characteristic phenotype only when its paired allele is identical.