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Belinda makes a quick stop at the grocery store on the way home from work, in order to pick up a few items. She carries her keys into the store, and in her rush she almost puts them down in order to reach up for an item on a high shelf. In a flash, however, she imagines leaving the keys on the grocery shelf, forgetting them, and getting back to her car only to realize she has lost her keys. The thought is so unpleasant that she carefully puts the keys in her purse instead. This example illustrates which of the following theoretical models?
Rate
The speed at which a certain event occurs, often expressed as a quantity over time.
Substitution
The act of replacing one thing with another, especially a similar item, in response to changes in market conditions or personal preferences.
Convex Preferences
In microeconomics, a condition where consumers prefer a mix of goods over having only one good, illustrated by a convex shape of their indifference curves.
Centered
In a general context, it means being in the middle or at the heart of something; in mathematics, it can refer to the process of adjusting data points or a distribution so that its mean equals zero.
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