Research shows that prices tend to remain sticky for a longer period of time

Question

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Research indicates that prices in the service sector tend to remain sticky for a longer period of time than in the manufacturing sector. This is because services often involve labor inputs, which are stickier than production inputs used in the manufacturing sector. Additionally, services have a greater degree of customization and differentiation, which can make it more difficult for firms to adjust prices quickly without risking losing customers. There is no significant evidence to support choices A, C, or D.

Research Shows That Prices Tend to Remain Sticky for a Longer