One major reason for sticky prices could be that ﬁrms selling ﬁnal goods and services do not want
to annoy customers with frequently changing prices.

Question

Quizplus · Accepted Answer

Sticky prices refer to the phenomenon wherein prices of goods and services do not adjust quickly to changes in supply and demand. One reason for this could be that firms do not want to annoy customers with frequent price changes.

One Major Reason for Sticky Prices Could Be That ﬁRms