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(Original Author): Relative. In the wine example, if you add a fixed cost, total absolute consumption will decline, but relative consumption of the more expens
by jamesoswald 14y ago
(Original Author): Relative. In the wine example, if you add a fixed cost, total absolute consumption will decline, but relative consumption of the more expensive one will increase. Likewise, when fixed costs are lower, absolute consuption increases, as per the law of demand. People spend more time watching media in general now than in the Middle Ages, but cat videos are relatively more popular.