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When a neutral stimulus becomes a conditioned stimulus, ____ has occurred.
Homothetic Preferences
Preferences where if a consumer prefers a bundle of goods A to B, they will also prefer a scaled-up version of A to the same scale-up of B, maintaining the same proportions.
Marginal Rate of Substitution
How quickly a consumer agrees to trade one good for another, aiming to keep their level of pleasure steady.
Edgeworth Box
A diagram used in economics to show the distribution of resources, illustrating how different mixes of goods can lead to an optimal allocation.
Competitive Equilibrium
A state in a competitive market where supply equals demand, and the market clears at a price where no participant has an incentive to change their behavior.
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