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Law of Demand
indicates the inverse relationship between the price of a good or service and the quantity demanded, with demand typically decreasing as prices increase, all else being constant.
Total Utility
The overall satisfaction or happiness received from consuming a certain amount of goods or services.
Reallocating Expenditures
The process of adjusting the distribution of spending across different areas or categories to better align with financial goals or constraints.
Budget Line
A budget line is a graphical representation of all possible combinations of two goods that can be purchased with a given budget, given their prices.
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