What this result says is that no matter how small the sector affected by menu-costs, it will tie down the flexible price.

And separate "signaling" prices, or flexible prices, were sent out on 300 other items.

I hope that putting in place a package of liberalization measures will result in lower and more flexible prices.

Notice that since we have now introduced a flexible price level, it has become necessary to relabel the horizontal axis as real income.

He also dismisses the assertion that flexible prices will buffer the impact of demand shocks on employment.

The equilibrium condition says that the real flexible price equals some constant (for example could be real marginal cost).

On a more empirical level, there is too little research on imperfect information as a source of price rigidity in models with perfectly flexible prices.

As opposed to Keynesian economics, classical economics assumes flexible prices both in the case of goods and wages.

The 2004 European Football Championship contributed to this, but also a successful commercial strategy, with flexible prices and incentives which attracted new airlines, especially low costs.

However, many see the assumption of flexible prices as useful in long-run analysis, since prices are not stuck forever: market-clearing models describe the equilibrium towards which the economy gravitates.

Assuming that a reasonable profit margin was established, this form of flexible price controls would, they contended, assure that companies still had an incentive to sell power into the California market.

"We're in a new world of flexible prices" in which markets react quickly and decisively to the gap between supply and demand, concluded Bruce Steinberg, an economist at Merrill Lynch.

Real business cycle (RBC) theory builds on the neoclassical growth model, under the assumption of flexible prices, to study how real shocks to the economy might cause business cycle fluctuations.

As agriculture secretary under president Dwight Eisenhower for eight years, Benson was linked with far-right political groups including the John Birch Society, and stirred controversy with a program of flexible price supports.

The Act established a flexible price support for basic commodities (excluding tobacco) at 82.5-90% of parity and authorized a Commodity Credit Corporation (CCC) reserve for foreign and domestic relief.

Competitive market equilibrium is the traditional concept of economic equilibrium, appropriate for the analysis of commodity markets with flexible prices and many traders, and serving as the benchmark of efficiency in economic analysis.

But in practice the main role of the model is as a sub-model of larger models (especially the Aggregate Demand-Aggregate Supply model - the AD-AS model) which allow for a flexible price level.

Mr. Gorbachev called for new legal guarantees to allay the anxiety of private farmers and other experimenters, a new system of cooperative banks and stock markets to finance them, and more flexible prices to reward those who succeed.

B6 CREATING FLEXIBLE PRICES Computer technology holds the promise of allowing companies from cruise lines to hotels to raise and lower prices according to demand.

More important, analysts say, is that what was once seen as the electronic pathway to the perfect market - a cyberspace buzzing with flexible prices and competitive auctions - has turned out to have only limited applicability to most real-world business transactions.

Harvey Rosenfield, president of the Foundation for Taxpayer and Consumer Rights, said that a central weakness of the new federal order was that it relied on flexible price guidelines to be debated between opposing sides - as opposed to hard caps - and thus would only open the door to more political bickering.

This was important because Thomas Sargent and Neil Wallace had argued that rational expectations would make macroeconomic policy useless for stabilization; the results of Taylor, Phelps, and Fischer showed that Sargent and Wallace's crucial assumption was not rational expectations, but perfectly flexible prices.

In macroeconomic terms all nominal prices will be sticky, even those in the potentially flexible price sector, so that changes in nominal demand will feed through into changes in output in both the meno-cost sector and the flexible price sector.