Staggered price setting ________.
A)refers to the lack of coordination by firms in changing prices
B)reduces price stickiness
C)has been proven to occur in all sectors of the economy
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Staggered price setting refers to the situation where firms do not coordinate with each other while changing prices. It occurs due to various reasons such as menu costs, market power, and customer behavior. It does not necessarily reduce price stickiness, and it may not occur in all sectors of the economy.

Staggered Price Setting ________