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What Is the Difference Between Sticky Prices and Flexible Prices

question 63

Essay

What is the difference between sticky prices and flexible prices? Explain.


Definitions:

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or at the end.

Distinctiveness

The quality of being unique or different in comparison to others, often making a person or object stand out.

Consistency

The quality of always behaving or performing in a similar manner, leading to predictability in actions or beliefs.

Consensus

A general agreement or collective opinion among a group of individuals, often achieved through discussion and compromise.

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