Price stickiness is a phenomenon in which, despite market changes, the price of a product remains unchanged or changes very slowly.
It goes without saying that the supply and demand rule should apply to all market prices. When demand falls, the price falls, and when demand increases, the price increases. This allows the market to function successfully. When prices respond to demand in a timely manner, an equilibrium price is reached.
But sticky prices can upset this balance. If the price of a product fails to adapt to market conditions in time, this will entail consequences for the efficiency of the economy.
On the scale of a single company, rigidity of prices can cause financial losses and stagnation of goods in stock. On a macroeconomic scale, price imbalances can cause losses of investments, problems with output and consumption of products, and employment issues.
Sticky prices make the market inefficient due to non-equilibrium. The faster prices adapt to changes in the market, the more efficient the market gets.