« previous next »

Author Question: Suppose that demand for a product falls, but prices are sticky. What is likely to happen to prices ... (Read 170 times)

Kikoku

  • Hero Member
  • *****
  • Posts: 540
on: Jun 30, 2018
Suppose that demand for a product falls, but prices are sticky. What is likely to happen to prices and output in that market, in the short run?
 
  What will be an ideal response?

Question 2

Which of the following statements is TRUE?
 
  A) The voting power of a nation in the International Monetary Fund is determined by its quota subscription.
  B) The voting procedure in the International Fund is determined by the World Bank.
  C) The voting power of a nation in the International Monetary Fund is called special drawing rights.
  D) All nations that belong to the International Monetary Fund have equal voting power.
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
Buy Test-Bank


tanna.moeller

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

If prices are not flexible, they may not immediately adjust downward in response to the decrease in demand. So in the short run, prices may stay constant, and output might fall by more than would have happened if prices were flexible.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Risk factors for falls Risk factors for falls
The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
Importance of Considering Gestalt Principles in Product Design (1 of 2) Importance of Considering Gestalt Principles in Product Design (1 of 2)
To find the derivative use product rule To find the derivative use product rule
The original Supply and Demand graph The original Supply and Demand graph
Sol Duc Falls in Olympic National Park, Washington. Sol Duc Falls in Olympic National Park, Washington.
Video: Molecules, Membrane Permeability and Structure

For a complete list of videos, visit our video library