The costs associated with changing prices in times of inflation are called:
A) inflation risks.
B) price staggering.
C) transaction costs.
D) shoe-leather costs.
E) menu costs.

Question

Quizplus · Accepted Answer

The costs associated with changing prices in times of inflation are called menu costs. These costs include the expenses of updating price lists, printing new catalogs and menus, and informing customers of new prices. Therefore, the best choice is E.

The Costs Associated with Changing Prices in Times of Inflation