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Budget Constraint
An economic model that represents all the combinations of goods and services a consumer can afford given their income and prices of goods.
Labor-Supply Curve
A graphical representation showing the relationship between the wages offered and the number of hours workers are willing to supply.
Substitution Effect
The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.
Budget Constraint
A financial limit that represents the combination of goods and services a consumer can purchase with their limited income.
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