Examlex
Which of the following conditions is a bacterial upper respiratory infection characterized by the formation of a thick membranous film across the throat?
Substitution Effect
The change in consumption patterns due to a change in relative prices, holding the consumer's overall utility constant.
Income Effect
The Income Effect describes how changes in an individual's income affect their purchasing capacity and thus their demand for goods and services.
Inferior Good
A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.
Substitution Effect
The economic principle that as the price of a good rises, consumers will replace it with cheaper alternatives, whereas if its price falls, the good will be favored over more expensive substitutes.
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