👉 The penny fluid, also known as the penny-fluid or penny-fluid theory, is a historical economic concept that suggests prices in the market are influenced by the psychological perceptions and emotions of buyers and sellers, rather than purely by supply and demand. This theory posits that small changes in price can significantly affect the volume of transactions, as people tend to make decisions based on perceived value and sentiment rather than objective data. For instance, a slight decrease in price might lead to a surge in demand, even if the underlying supply remains constant. This psychological aspect of pricing is thought to explain phenomena like price anchoring and the impact of minor price adjustments on consumer behavior.
