The demand for massage therapists declined in the spring of 2012,but the starting wages paid to massage therapists was still the same at the end of 2012.This is an example of a
A)sticky price.
B)flexible price.
C)highly regulated market.
D)price control.

Question

Quizplus · Accepted Answer

A sticky price is a situation where prices do not adjust quickly to changes in demand or supply in the market. In this case, even though demand for massage therapists decreased, the starting wages paid to them remained the same, indicating sticky prices.

The Demand for Massage Therapists Declined in the Spring of 2012,but