New study reveals how changes in prices impact consumer welfare.
The article explores how demand for goods changes with prices and income. By studying constant elasticity demand models, researchers found a way to understand people's preferences for specific goods. They discovered a theory that helps calculate how changes in income and prices affect welfare. The study also revealed symmetry restrictions that show how preferences shift with price changes. Overall, the research provides insights into how people make choices about what to buy based on prices and income levels.