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Suppose there is a correlation of +0.87 between the length of time a person is in prison and the amount of aggression the person displays on a psychological inventory. This means that spending a longer amount of time in prison causes people to become more aggressive.
Consumer Equilibrium
A state in which a consumer has allocated their income in a way that maximizes their total utility, given the prices of goods and services.
Total Utility
The total satisfaction received from consuming a particular quantity of goods and services.
Indifference Curve
A graph representing combinations of two goods or services among which a consumer is indifferent, showing preference levels.
Optimal Consumption
The mix of goods and services that maximizes consumer utility or satisfaction given their budget constraints.
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