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What is the difference between a vertical fiscal transfer and a horizontal fiscal transfer?
Income Offer Curve
A graphical representation showing how an individual's optimal choice of goods to consume changes as their income changes.
Substitutes
Substitutes are goods or services that can be used in place of each other, where the consumption of one increases, the demand for the other decreases.
Increase Demand
A rise in the quantity of a product or service that consumers are willing and able to purchase at a given price, usually due to factors like income growth, price decrease of the good, or changes in tastes and preferences.
Demand Curve
A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.
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