Crucially, it is hard to measure the responsiveness of drug demand to changes in price.
TO ANYONE in the business of trading stocks, tiny changes in price can make an enormous difference.
Compare this increase in price to the changes in price of other cultural institutions or events during the same time period.
Professional traders may find the continuous repricing of E.T.F.'s for bonds useful in large transactions, where tiny changes in price add up to big differences in profits.
But high-frequency traders are not making decisions based on a company's future prospects; they are seeking to profit from tiny changes in price.
When buying things in a straight exchange of money for goods, people often respond to changes in price in exactly the way that theoretical economics predicts.
Countries that were heavily dependent on foreign trade disliked the frequent changes in price and costs under the new floating rates.
Interest and principal are usually payable in fixed monetary units, but they may be payable in amounts with fixed purchasing power based on changes in price levels.
This claims to show that addiction is rational, mainly on the basis that people's response to changes in price is statistically significant.
("Inelastic supply" means that supply can't adjust easily in response to changes in price; I'll have more about New York housing costs in a subsequent blog post).
Because it is now tracked by more than 60 mutual funds with more than $100 billion in assets, the addition or subtraction of a stock can cause big changes in price.
