Determine whether prices increases or price decreaese moresalient? (that is, which do we more readil

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Determine whether prices increases or price decreaese moresalient? (that is, which do we more readily remember)? Why? The overall CPI is an
average, that includesconsiderable variance. The price of lamb and mutton, for example,is down over 13 percent on the past year. But the price of beef isup 10 percent. The upshot is that most of the rising prices arerising at a rate that’s faster than 2 percent. And when you thinkabout inflation, you’re probably thinking about the prices that aregoing up — not the prices that aren’t. And you’re not wrong tothink that most of the goods that are becoming more expensive arebecoming more expensive at a faster rate than that. It’s just thatthose price increases are offset by price declines elsewhere. Another issue is that when firms cut prices, they generally doso a bit on the sly. Sales will be 20 percent off rather than 15percent off. Or the sale will last two weeks instead of one. Or themarkdown will be extended to a larger number of items. These discounting tactics are designed to maximize revenue fromless-thrifty shoppers. But they’re also meant to make you feelsubjectively like you got a good deal through your own personalthrift and diligence. That same feeling, however, tends to blindyou to the reality that if
you are finding more greatdeals lately probably everyone else is too. Prices are falling andyou just don’t realize it. Source:http://www.vox.com/2014/7/22/5926079/inflation-perceptions-frequency-bias . . .

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