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Substitution Effect
A response to price changes in which consumers replace more expensive items with less costly alternatives.
Income Effect
The change in an individual's consumption patterns resulting from a change in their real income.
Labor Supply Curve
A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.
Substitution Effect
The change in consumption patterns due to a change in relative prices, leading consumers to replace more expensive items with cheaper alternatives.
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