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This phenomenon, whose name was likely coined by Pippa Malmgren, may be an example of Arthur Okun’s “invisible handshake” between firms and consumers. For 10 points each:
[10e] Name this phenomenon, a portmanteau that describes the rising unit prices that result when packages are made smaller but products retain the same price. It came into wide use circa 2021.
ANSWER: shrinkflation
[10m] Inflation of any type imposes these costs onto firms, as they must change the nominal prices of their products more frequently. New Keynesians point to these costs as a microfoundation for price stickiness.
ANSWER: menu costs
[10h] The Consumer Price Index automatically accounts for changes in package size and uses this statistical method to correct for changes in product quality. This adjustment predicts the price of a product based on its attributes.
ANSWER: hedonic quality adjustment
<Social Science>

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Bristol AManchester100010
Cambridge AOxford A1010020
Cambridge CCambridge B100010
Durham AWarwick A1010020
Cambridge DImperial B100010
Imperial ALSE A100010
Durham BLSE B100010
Oxford BSouthampton A100010
VanderbiltBristol B100010
Warwick BEdinburgh100010
Southampton BBirmingham100010