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When a Consumer Joins a Network, the Private Demand Curve

question 317

Multiple Choice

When a consumer joins a network, the private demand curve _____ and the social demand curve _____.


Definitions:

Price

The price one must pay to obtain a good or service.

Claret

A term often used in British English to refer to red Bordeaux wine.

Utility Function

A mathematical representation of how different goods or bundles of goods provide satisfaction or utility to a consumer.

Substitution Effect

The change in the consumption of goods as a result of a change in their relative prices, holding the consumer's utility level constant.

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