explain price stickiness with diagram
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Price stickiness or sticky prices or price rigidity refers to a situation where the price of a good does not change immediately or readily to the new market-clearing price when there are shifts in the demand and supply curve.
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What Is Price Stickiness? ...
"Sticky" is a general economics term that can apply to any financial variable that is resistant to change. When applied to prices, it means that the sellers (or buyers) of certain goods are reluctant to change the price, despite changes in input cost or demand patterns.
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