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Indifference Curve
A graph representing combinations of goods among which a consumer is indifferent, showing trade-offs between two goods.
Budget Line
A graphical representation of all possible combinations of two goods that can be purchased with a given budget and prices.
Substitution Effect
The substitution effect describes the change in consumption patterns due to a change in relative prices, leading consumers to substitute a product for a cheaper alternative.
Income Effect
The adjustment in demand for goods and services triggered by a change in consumers' discretionary income.
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