Changing relative prices could revolutionize efficiency in production sectors.
The article discusses how prices of goods can be sticky, meaning they don't adjust quickly. This can happen because it's costly to change prices or because prices are set to change only at certain times. When prices are sticky, all goods must be sold at the same price for production to be efficient. But if technologies or consumer preferences change, prices need to adjust to reflect these differences. This means that nominal prices within sectors need to change over time.