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Define the concept of price flexibility.  Do flexible prices make it easier or more difficult for an...

  1. Define the concept of price flexibility.  Do flexible prices make it easier or more difficult for an economy to avoid business cycles?  Explain your answer.
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Answer #1

Flexible pricing is the practice of pricing a product or service by negotiations between buyers and sellers, within a certain range,When done correctly - companies are able to sell their products with a higher price than originally.

flexible prices are the reason that business cycle runs and passes through the 4 stages expansion, peak, contraction, and trough.Business cycle help tthe economy in lot of ways mainly Economic growth can be caused by random fluctuations, seasonal fluctuations, changes in the business cycle, and long-term structural causes. Policy can influence the latter two. Business cycles refer to the regular cyclical pattern of economic boom (expansions) and bust (recessions)

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