Which of the following is an example of price stickiness?
a. Stark Inc. always lowering the price of its products even when it experiences a decrease in production costs
b. Flavors of the East, a restaurant, not change the price of its product with every change in supply and demand
c. Home Concepts, a furniture store, giving a discount on all its furniture to increase annual sales
d. Quick Connect, a cable operator, changing the price of channels according to the demand of its customers
b
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The value added at all stages of production sums to the market value of the final good, and the value added for all final goods sums to GDP based on the income approach
a. True b. False Indicate whether the statement is true or false
Constant returns to scale occur when the firm's long-run
a. total costs are constant as output increases. b. average total costs are constant as output increases. c. average cost curve is falling as output increases. d. average cost curve is rising as output increases.