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Diminishing Marginal Utility
A principle stating that as more of a good or service is consumed, the additional satisfaction from consuming one more unit decreases.
Income Effect
The impact of income changes on the demand for goods or services by an individual or within the economy.
Substitution Effect
Describes how consumers react to a change in the price of a good by substituting it with another good that is relatively cheaper.
Income Effect
The income effect refers to the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.
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