Prices Tend to Be Sticky Because

question 2

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:

Latent Class Analysis

Latent Class Analysis is a statistical method used for identifying subgroups within a larger population based on individuals' responses or characteristics, assuming that these subgroups are not directly observable.

Mediators

Variables that explain the mechanism through which an independent variable influences a dependent variable in an experimental setting.

Multiple Regression Analysis

A statistical technique that examines the linear relationship between a dependent variable and two or more independent variables.

Cross-Sectional Survey Studies

Research that involves collecting data from a population or a representative subset at one specific point in time to examine various variables.