Each of the following is a possible reason why prices are sticky except
A) managers and workers find that changing prices or renegotiating wages is costly.
B) managers and workers lack the ability to differentiate between changes in total economywide spending . and changes in demand for their specific products.
C) the level of prices is as much a sociological as well as an economic variable.
D) managers and workers suffer from "money illusion."

Question

Quizplus · Accepted Answer

Managers and workers lacking the ability to differentiate between changes in total economywide spending and changes in demand for their specific products is not a reason for price stickiness. Price stickiness is more about the costs and complexities involved in changing prices, sociological factors, and psychological factors like money illusion.

Each of the Following Is a Possible Reason Why Prices