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What Is Occurring When Prices on Average Are Rising

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What is occurring when prices on average are rising?


Definitions:

Difference Threshold

The minimum difference in stimulation that a person can detect 50 percent of the time, also known as the just-noticeable difference (JND).

Absolute Threshold

The minimum intensity at which a stimulus can be detected by an individual 50% of the time.

Weber's Law

A principle stating that the just-noticeable difference between two stimuli is proportional to the magnitude of the stimuli.

Absolute Threshold

The minimum intensity of stimulation that must occur before you experience a sensation.

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