Some Firms Do Not Instantly Adjust the Prices They Charge

question 102

Multiple Choice

Some firms do not instantly adjust the prices they charge in response to changes in demand for all of the following reasons except:

• A) it is costly to alter prices.
• B) they do not want to annoy their frequent customers.
• C) prices do not adjust when there is perfect competition.
• D) some prices are set by long-term contracts between firms and customers.

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Definitions:

Government Sector

The part of the economy that is controlled by the state, including all government agencies and entities at the federal, state, and local levels.

Consumption Sector

A segment of the economy that involves individuals and households that use goods and services for personal needs rather than for manufacturing or resale.

Direct

Direct refers to an immediate or straightforward method or approach, without involving intermediaries or detours.

Progressive

Supporting or advocating for gradual social, political, or economic reform through governmental action.