Which of the following explains why resource prices are often the slowest prices to adjust?
A) Resource prices are not affected by inflation.
B) Resource prices are often set by lengthy contracts.
C) Resource prices are often set by governments.
D) Resource prices are not reported in the consumer price index (CPI).
E) Resource prices are all tied to inflation.

Question

Quizplus · Accepted Answer

Resource prices are often set by lengthy contracts, which can make them slow to adjust to changes in supply and demand.

Which of the Following Explains Why Resource Prices Are Often