The demand for massage therapists declined in the spring of 2016, but the starting wages paid to massage therapists was still the same at the end of 2016. This is an example of a
A) sticky price.
B) flexible price.
C) highly regulated market.
D) price control.

Question

Quizplus · Accepted Answer

This is an example of a sticky price because despite a decrease in demand, the starting wages paid to massage therapists remained the same, indicating that the price did not adjust to the change in market conditions.

The Demand for Massage Therapists Declined in the Spring of 2016