The demand for corn has increased in May without any change in supply. Eight months later there still has been no change in corn prices. This is an example of a
A) price floor.
B) price control.
C) sticky price.
D) macroeconomic price.

Question

Quizplus · Accepted Answer

This scenario is an example of sticky prices because even though the demand for corn increased in May, the price did not immediately increase. Prices in the market often have a tendency to be "sticky" due to the reluctance of firms to frequently adjust prices in response to changes in demand or supply.

The Demand for Corn Has Increased in May Without Any