Examlex
What type of volcano is shown in the diagram below?
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another that is relatively cheaper.
Income Effect
The variation in income for a person or within an economy, and its influence on the demand levels for a certain good or service.
Labor-Supply Curve
A graph showing the relationship between the quantity of labor supplied and the wage rate, typically illustrating how higher wages encourage more labor supply.
Income Effect
The change in an individual's or household's consumption resulting from a change in real income, influencing purchasing power.
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