|Overview: Sticky Prices|
Prices that stay the same despite being pushed by changes in supply and demand.
What are Sticky Prices?
John Spacey, updated on February 07, 2017
Sticky prices is a tendency for prices say at a well established price range despite changes in supply or demand. In other words, some prices tend to resist change despite economic forces that would typically push the price up or down. The affect of sticky prices can be seen in product prices, salaries and asset prices. For example, companies in a particular industry may resist increasing a wage beyond an established range even if that range no longer attracts enough qualified applicants. This can be seen the result of factors such as resistance to change.
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