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What Effect Is Due to a Price Change That Moves

question 66

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What effect is due to a price change that moves the consumer along the same indifference curve to a point with a new marginal rate of substitution


Definitions:

Focus

A point of concentration or attention.

Vertex

A point where two or more curves, lines, or edges meet; in geometry, it is often used to refer to the corner point of a polygon or angle.

Parabola

A symmetrical open plane curve formed by the intersection of a cone with a plane parallel to its side; its general equation is \(y = ax^2 + bx + c\).

Focus

A point used in the definition of a curve or shape, such as an ellipse or parabola, that helps determine its form.

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