1 Answer

answered by
  1. Price rigidity refers to a situation in which whether there is change in demand and supply the price tends to stay fixed.
  2. If a firm tries to reduce the price the rivals will also react by reducing their prices. Likewise, if it tries to raise the price, other firms will not do so. It will lead to loss of customers for the firm which intended to raise the price.
Featured Ads

Social Media Links

...