Resource prices are fixed for some period of time because
A)some workers enter into long-term contracts.
B)firms purchase raw materials on set-price contracts.
C)many workers get pay increases only once a year.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above reasons contribute to fixed resource prices for some period of time. Workers may enter into long-term contracts that determine their wage for a set period of time, while firms may purchase raw materials on set-price contracts that lock in the cost of those resources. Additionally, some workers may receive annual pay increases, which can also contribute to fixed resource prices over a certain period of time.

Resource Prices Are Fixed for Some Period of Time Because