Question

Based on the sticky-price model, the short-run aggregate supply curve will be steeper the greater the:

Answer 1

The correct answer will be the "proportion of firms with flexible prices".

Step-by-step explanation:

• The sticky market or price mechanism induces on the upward steep slopes quantity supplied for the immediate term cumulative. That was because firms reacting to changes and differences in economic conditions are restrictive in fluctuating prices.
• We addressed the explanations or causes behind the strength and stiffness throughout this section.

So that the above is the correct solution.