Question
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>
Summary
| 2024 ACF Winter at UC Berkeley | 2024-11-16 | Y | 3 | 16.67 | 100% | 67% | 0% |
| 2024 ACF Winter at Clemson | 2024-11-16 | Y | 8 | 10.00 | 100% | 0% | 0% |
| 2024 ACF Winter at Clemson | 2024-11-16 | Y | 8 | 17.50 | 13% | 100% | 63% |
| 2024 ACF Winter at Lehigh | 2024-11-16 | Y | 9 | 15.56 | 100% | 33% | 22% |
| 2024 ACF Winter at Northwestern | 2024-11-16 | Y | 9 | 12.22 | 100% | 22% | 0% |
| 2024 ACF Winter at Ohio State | 2024-11-16 | Y | 7 | 10.00 | 100% | 0% | 0% |
| 2024 ACF Winter at Online | 2024-11-16 | Y | 8 | 10.00 | 88% | 13% | 0% |
| 2024 ACF Winter at UBC | 2024-11-16 | Y | 3 | 13.33 | 100% | 33% | 0% |
| 2024 ACF Winter at Oxford | 2024-11-16 | Y | 11 | 11.82 | 100% | 18% | 0% |