Which of the following situations is likely to lead to price stickiness when input prices increase? a. Monopolist are too "lazy" to change prices. b. Firms face kinked demand curves. c. Consumers buy the product infrequently. d. The product represents a small share in cosumers' budget. e. All of the above.

Which of the following situations is likely to lead to price stickiness when input prices increase? a. Monopolist are too "lazy" to change prices. b. Firms face kinked demand curves. c. Consumers buy the product infrequently. d. The product represents a small share in cosumers' budget. e. All of the above.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter11: Marketing And Distribution

Section: Chapter Questions

Problem 8AA

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Question

Which of the following situations is likely to lead to price stickiness when input prices increase?

a. Monopolist are too "lazy" to change prices.

b. Firms face kinked demand curves.

c. Consumers buy the product infrequently.

d. The product represents a small share in cosumers' budget.

e. All of the above.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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