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You just ran over a skunk on your way to class. The odor was overwhelming and in response you wrinkled your nose in disgust by contracting your
Utility Function
A utility function is a representation of preferences over a set of goods and services, showing the level of satisfaction or utility that different bundles of goods provide to a consumer.
Consumption
The use of goods and services by households or individuals for personal needs or to derive utility.
Income
Financial earnings generated through employment, investments, or other sources, contributing to an individual's purchasing power.
Utility Function
A mathematical representation that ranks consumer preferences over a set of goods or services, often leading to an optimal choice.
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