Examlex
Reflexes
Substitution Effect
The adjustment in how consumers spend due to differences in the prices between goods, leading to the substitution of one product for another.
Inferior Good
A type of good whose demand decreases when consumer income rises, unlike normal goods, which have a positive correlation with income.
Normal Good
A type of good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.
Demand Function
A mathematical formula that describes the relationship between the quantity of a good or service demanded and its price, along with other factors like income and the prices of related goods.
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