The pass-through analysis considers the elasticity of demand and supply resulting in an inability for people to adjust in the short run.

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The pass-through analysis takes into account the responsiveness of both demand and supply to changes in price. However, it recognizes that in the short run, consumers and producers may not have the ability to adjust their behavior quickly, resulting in a certain degree of price stickiness.

The Pass-Through Analysis Considers the Elasticity of Demand and Supply