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Prices (of goods, services and work) are in huge part influenced by affluence of the buyer.

I'm not sure if this effect is captured by some economic theory (can someone point me to it?) but it's very real.

On the local level where same goods can have very different prices if the local customers can afford higher prices.

Also on national level when real estate prices shot up when credit becomes more available due to change of rules.



That economic theory is a combination of supply-and-demand and collusion.


Does it take into account money supply on customer side?

My impression was that it only considers supply and demand of a given good, treats money differently as something else that everybody has infinite demand for and wants to supply in minimal quantity in exchange for good.

Is there a theory that treats money just as any other good? With limited demand and sometimes oversupply?




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