Most economists believe that prices are:

Business

1 answer:

BaLLatris [955]4 years ago

8 0

Answer: Most economist believe that prices are flexible in the long run but many are sticky in the short run.

Explanation:

Prices are sticky in the short run because producers and buyers take time to adapt to new situations. If there is a shortage of butter, lets say, the economic theory says that the prices will rise because there is less butter ( ceteris paribus = all the other factors remain constant). Actually, buyers and suppliers need time to adapt to the new situation. However, in the long run buyers and suppliers have time to adapt to new situations so prices become more flexible.

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CPI is a statistical estimate generated from the price of a sample of representative items that are priced on a regular basis. Sub-indexes and sub-sub-indexes are calculated for different categories and subcategories of goods and services and are combined to create an overall index with weights that reflect the share of total consumer spending covered by the index.

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Regulate the price. It then shrinks the monetary size to show the actual change in value. In most countries, the CPI, along with the census, is one of the most widely followed national economic statistics.

Learn more about CPI here: brainly.com/question/1889164

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