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The abnormal return was a priced effect of the improved liquidity produced by the upgrade.
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"That's one of the reasons the price effect can lag," Dr. Kroll said.
It is a relative-price effect rather than a rise in prices across the board.
Several studies show this income effect can outweigh the initial price effect.
Over all and over time, there should be no net price effect, he says.
But the price effect can prove temporary if traders conclude that the chance of additional releases of oil is remote.
Unfortunately, the gas-price effect is unlikely to cancel out the house-prices-tumbling effect or the "my 401(K -is-probably 1(K -is-probablyth of which helped send consumer spending down 0.3 per cent in September.
Thus this price effect may harm the very people whom a minimum wage is supposed to help.
One reason for a given volume's costing too much to supply is the so-called relative price effect.
The relative price effect is somewhat subjective, however, because of the difficulty of measuring the quality of goods and services.
(America's International Trade Commission, which argued for the tariffs, disagrees about the price effect, saying they have raised prices by only 0.94%. The president has a number of options.
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