If the price of bubble gum changed in the market from 1 cent to 1.5 cents and Joe's Market didn't change the price it charges for the bubble gum, this behavior is likely due to

Question

Quizplus · Accepted Answer

This behavior is likely due to small menu costs. It may not be worth it for Joe's Market to incur the costs of changing the price of bubble gum in response to a small change in the market price. Small menu costs refer to the costs incurred by firms in adjusting their prices due to changes in the market.

If the Price of Bubble Gum Changed in the Market