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The Substitution Effect of a Price Change Describes What Happens

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The substitution effect of a price change describes what happens to the shift in demand for a good when its price changes.


Definitions:

Upward Social Comparison

The process of comparing oneself with others who are perceived to be better off or superior in some way.

Better than Average Effect

A cognitive bias where individuals overestimate their own qualities and abilities compared to others.

Physical Attractiveness

The perception of an individual's physical traits as aesthetically pleasing or beautiful, often influenced by societal standards and personal preferences.

Self-other Knowledge Asymmetry

The disparity in knowledge that an individual has about themselves compared to what others know about them.

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