Please Define the Following Key Terms

question 71

Essay

Please define the following key terms. Show Who? What? Where? When? Why Important?
-Giuseppe Garibaldi

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Definitions:

Income

Funds acquired regularly as earnings from employment or investment returns.

Substitution Effect

The change in consumption patterns due to a change in relative prices, holding the consumer's utility level constant.

Income Effect

The change in an individual's consumption choices resulting from a change in real income, due to changes in price.

Optimal Consumption Bundle

The mix of products and services that optimizes a buyer's satisfaction within their spending limit.