Examlex
The usual purpose of an R-chart is to signal whether there has been a:
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, leading to consumers replacing more expensive items with less costly alternatives.
Diminishing Marginal Utility
The principle that as more of a good or service is consumed, the additional satisfaction or utility gained from consuming an additional unit declines.
Total Utility
The total satisfaction or benefit received by consuming a given total quantity of a good or service.
Utils
A theoretical unit of measurement used in economics to represent satisfaction or utility obtained by consuming goods and services.
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