Price stability
What Price stability means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Price stability
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Price stability in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A situation where firms avoid price competition because they anticipate rivals' reactions to any price changes.
Avoiding volatile price swings, which make long-term planning difficult for consumers and businesses.
Topics that use Price stability
- Oligopoly (Pearson Edexcel A-Level)
- Possible macroeconomic objectives (Pearson Edexcel A-Level)
Related terms
- Competition regulation
- Concentration ratio
- Current account
- Current account surplus
- Economic growth
- Equilibrium
- International competitiveness
- Living standards
Using Price stability in the exam
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