There are two things that can make prices “sticky”. They are _____ and _

ID: 1108817 • Letter: T

Question

There are two things that can make prices “sticky”. They are _________ and _________. A) Elmer’s glue and scotch tape B) rising input prices and output prices dropping C) menu costs and existing contracts D) rising output prices and input prices dropping There are two things that can make prices “sticky”. They are _________ and _________. A) Elmer’s glue and scotch tape B) rising input prices and output prices dropping C) menu costs and existing contracts D) rising output prices and input prices dropping A) Elmer’s glue and scotch tape B) rising input prices and output prices dropping C) menu costs and existing contracts D) rising output prices and input prices dropping

Explanation / Answer

Answer

B) rising input prices and output prices dropping

The AD slopes downward as the price level decreases and the input prices increase so the prices become sticky.

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There are two things that can make prices “sticky”. They are _________ and _____

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There are two things that can make prices “sticky”. They are _____ and _