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Write the standard form of the equation of the circle with the given characteristics. endpoints of a diameter:
Income Effect
The change in consumption that results from a change in real income (purchasing power), holding prices constant, reflecting how higher income increases consumption of goods while lower income reduces it.
Income Effect
The change in an individual's consumption choices resulting from a change in their real income.
Substitution Effect
The economic understanding that as prices rise (or incomes decrease), consumers will replace more expensive items with less costly alternatives.
Inferior Good
A type of good for which demand decreases when the income of the consumer increases, inversely related to normal goods.
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