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How are friendships different from other relationships?
Income Effect
The change in consumption that results from changes in real income, affecting the purchasing power of consumers.
Substitution Effect
The economic understanding that as prices rise or income decreases, consumers replace more expensive items with less costly alternatives.
Wage Increase
A rise in the rate of pay employees receive for their work.
Leisure
Free time not taken up by work, during which individuals can engage in activities of their choice for relaxation or pleasure.
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