Asked by Attila Szalay on May 26, 2024

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The costs of changing price tags and price listings are known as

A) inflation-induced tax distortions.
B) relative-price variability costs.
C) shoeleather costs.
D) menu costs.

Menu Costs

The costs incurred by firms in order to change their prices, including costs related to printing new menus, re-tagging items, or advertising new prices.

Inflation-induced Tax Distortions

Discrepancies in the effective tax burden caused by inflation, which can lead to distorted investment and consumption decisions.

Shoeleather Costs

Shoeleather costs are the metaphorical costs of inflation, referring to the time and effort spent trying to avoid holding onto cash as it loses value.

  • Identify and explain the costs associated with inflation, including shoeleather costs and menu costs.
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AM
Alexis MiddletonMay 27, 2024
Final Answer :
D
Explanation :
Menu costs refer to the expenses that businesses incur when they change their prices, which includes the physical act of changing price tags and updating price listings in menus, catalogues, or on websites.