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Calculating Happiness Amid Price Changes
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Created October 6, 2025About this video
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Economists can literally calculate the exact cash you need to stay just as happy when prices go up.
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Imagine you have a $60 budget, and the price of something you love jumps from $8 to
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$12. You're bummed. To get you back to your original happiness level,
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but at these new, higher prices, you'd need an extra $16.53. We can even flip
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it and calculate how much money to take away from you *before* the price hike to make you
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just as unhappy as you would be after. It’s all about putting a price tag on your
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well-being.
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