how convincing are menu costs in explaining nominal rigidities?

Answer 1

Fairly convincing....

Bascially, you can't change the menu that often, so you need to price according to what you expect people will be willing to pay.

People will then choose what they want based on price (sometimes).

If someone has a tn of money, and the menu prices are very low, most likely they will not be as inelastic in their demand, so menu prices are not convincing for people who don't choose based on price.