Each of the following is a possible reason why prices are sticky except
A) managers and workers are philosophically opposed to changing prices or renegotiating wages.
B) managers and workers lack information and so confuse changes in total economy-wide spending with 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

The concept of being philosophically opposed to changing prices or renegotiating wages is not a standard economic explanation for price stickiness. Price stickiness typically relates to practical issues such as menu costs, contract durations, and informational frictions, rather than philosophical oppositions.

Each of the Following Is a Possible Reason Why Prices