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Substitution Effect
Describes how consumers react to an increase in a good's price by substituting another good, affecting the quantity demanded.
Marginal Utility
The additional utility or enjoyment derived from the consumption of one more unit of a product or service.
Optimal Consumption
The mix of goods and services that maximizes the utility or satisfaction of a consumer given their budget constraint.
Utility
A measure of the satisfaction, usefulness, or pleasure that individuals get from consuming goods and services.
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