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Suppose the Price of Apples Rises Making Oranges Relatively Less

question 126

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Suppose the price of apples rises making oranges relatively less expensive. The increase in orange consumption as a result of the price change is an example of the income effect.


Definitions:

Accepting

The act of receiving something offered, or recognizing a situation or fact as true.

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A psychosocial stage described by Erik Erikson, focusing on the development of close relationships in early adulthood.

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The state or condition of being apart from social or societal contact, which can be either self-imposed or due to external circumstances.

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