When we say "Prices of many goods and services are inflexible in the short-run" it means:

Question

Quizplus · Accepted Answer

Prices of goods and services do not change immediately in response to changes in demand or supply in the short-run. This is because some goods and services may take time to produce or adjust to changes in demand, or sellers may have contracts or agreements that prevent them from changing prices quickly. Therefore, prices are considered "inflexible" or "sticky" in the short-run.

When We Say "Prices of Many Goods and Services Are