According to the Sticky-Price Theory, Which Statement Is Consistent with an Unexpected

question 59

Multiple Choice

According to the sticky-price theory, which statement 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:

Groupthink

A psychological phenomenon occurring in a decision-making group where the desire for harmony or conformity results in an irrational or dysfunctional outcome.

Stereotypical False Assumptions

Erroneous beliefs or generalized ideas about a group or category of people that do not account for individual diversity and complexity, often leading to misunderstanding and discrimination.

Expressed Discomfort

Expressed discomfort is the verbal or non-verbal communication of unease, dissatisfaction, or distress from an individual or group.

Dominant Group's Values

The preferences, principles, and standards held by the most influential or controlling group within a culture or organization.