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The Substitution Effect of a Price Change Is the Change

question 125

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The substitution effect of a price change is the change in consumption that results from the movement to a new indifference curve.


Definitions:

Prussian Blue

A dark blue pigment used in paints and inks, chemically known as iron(III) hexacyanoferrate, and historically significant for its role in art and industry.

Receding Perspective

A technique in art that creates the illusion of depth and distance within a flat surface, making objects appear farther away as they diminish in size.

Kanagawa

A prefecture located in Japan, known for the Great Wave off Kanagawa, a famous woodblock print by Hokusai.

Aesthetics

A branch of philosophy dealing with the nature of beauty, art, and taste, and the creation and appreciation of beauty.

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