Which of the following statements about price stickiness or flexibility is true?
A)Prices of many raw materials are less flexible than the prices of final goods and services.
B)Prices of many raw materials are much more flexible than the prices of final goods and services.
C)Prices of many raw materials are about as flexible as the prices of final goods and services.
D)Prices of many raw materials are only slightly more flexible than the prices of final goods and services.

Question

Quizplus · Accepted Answer

Prices of many raw materials are typically more flexible because they are often traded in competitive markets where prices can quickly adjust to changes in supply and demand.

Which of the Following Statements About Price Stickiness or Flexibility