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From an evolutionary perspective, why would humans sometimes act charitably toward strangers?
Substitution Effect
The substitution effect describes the change in consumption patterns due to a change in relative prices, leading consumers to substitute a product for a cheaper alternative.
Income Effect
The adjustment in demand for goods and services triggered by a change in consumers' discretionary income.
Income Increases
Situations where an individual's or household's earnings rise, potentially affecting their spending, saving, and investment behaviors.
Budget Constraints
The limitations on the consumption choices of individuals or organizations due to limited resources.
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