Recall Application 1, "Measuring Price Stickiness in Consumer Markets," to answer the following questions:
-According to the application, during periods of high inflation, catalog prices tend to show
A) more stickiness.
B) no change in stickiness.
C) stickiness equal to the level of inflation.
D) less stickiness.

Question

Quizplus · Accepted Answer

During periods of high inflation, catalog prices tend to show less stickiness as firms are forced to update prices frequently to keep up with rising costs. This is supported by the findings in the application, which show that catalog prices were adjusted more frequently during periods of high inflation.

Recall Application 1, "Measuring Price Stickiness in Consumer Markets," to Answer