Examlex
With which of the following statements would strict behaviourists most likely agree?
Income Effect
The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.
Diminishing Marginal Utility
The principle that as a person consumes more of a good, the satisfaction (utility) gained from each additional unit decreases.
Total Utility
The total satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.
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