Prices are especially sticky in the:
A) upward direction.
B) downward direction.
C) leftward direction.
D) rightward direction.

Question

Quizplus · Accepted Answer

Prices tend to be more resistant to falling than rising, as firms are often hesitant to reduce prices due to the fear of losing potential profits or appearing low quality. This phenomenon is often referred to as the "downward stickiness" of prices.

Prices Are Especially Sticky in The