Price Rigidity

Multiple Choice

Price rigidity:

A) refers to the inability for firms to change price because of consumer reaction.
B) is usually an indication of collusive agreements in an industry.
C) is the tendency for all firms in an industry to charge approximately the same price for a specific product over long periods of time.
D) is the tendency for all firms in an industry to charge approximately the same price for a specific product over a short period of time even though prices may vary widely over long periods of time.
E) is almost never an indication of collusive agreements in an industry.