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Marginal Rate of Substitution
The rate at which a consumer is willing to substitute one good for another, maintaining the same level of utility.
Utility Function
A formula used by economists to map the degree of happiness or satisfaction one derives from consuming quantities of goods and services.
Consumption
The action of using up goods and services to satisfy needs or desires.
Income
The financial gain received by an individual or entity, usually through employment, investments, or business operations.
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