Sticky prices are a result of:
A) lack of coordination between auction prices and custom prices.
B) labor union influence.
C) economic coordination problems.
D) government regulation of the economy.

Question

Quizplus · Accepted Answer

Sticky prices occur due to economic coordination problems, which can arise from market inefficiencies, imperfect information, or uncertainty. The result is that prices may not adjust readily to changes in supply or demand, leading to price stickiness. The other choices (lack of coordination between auction prices and custom prices, labor union influence, and government regulation) are not significant factors contributing to sticky prices.

Sticky Prices Are a Result Of