New study reveals hidden 'wealth effect' in consumer behavior
The article challenges the idea that price changes don't affect how much you can buy. It argues that price changes do impact your purchasing power. By focusing on the constant opportunity cost of buying a specific item, the researchers show that there is a type of income effect in price theory, which could be called a "wealth effect." This finding suggests that the difference between two economic theories on this topic is not as big as previously thought.