Tuesday, December 7, 2021

Shrinkflation - The Economics of Shrinking Sizes

Visiting Elaine Schwart's Blog again. 

Excerpt:

"Economists have hypothesized that consumers care more about rising prices than shrinking packages. Paying much more attention to price (and the law of demand), we monitor inflation. Not only are we aware of its ups and downs but also we perceive the original price as an “anchor” that influences our response to the price increase. By contrast, quantity is less of an anchor."
















Image credit - BBC

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