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

Question

Quizplus · Accepted Answer

This situation refers to a sticky price, which means that the wage rate for auto mechanics did not adjust to the increase in demand for their services. This is likely due to factors such as contracts or agreements between employers and workers, or a reluctance to change wages frequently. This is not an example of price control, flexible price, or a highly regulated market.

The Demand for Auto Mechanics Increased in the Summer of 2016