Prices and wages tend to be
A) ﬂexible both upward and downward.
B) inﬂexible both upward and downward.
C) ﬂexible downward but inﬂexible upward.
D) ﬂexible upward but inﬂexible downward.

Question

Quizplus · Accepted Answer

Prices and wages are generally more flexible upward due to factors like inflation and demand-driven increases, but tend to be inflexible downward due to contracts, minimum wage laws, and reluctance to lower wages or prices for fear of negative reactions from employees and customers.

Prices and Wages Tend to Be