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Client: "I've had a bad week.I'm really down." Therapist: "You've had some unpleasant experiences lately and are feeling quite depressed as a result." What is the therapist's statement in this interaction intended to communicate to the client
Income Effect
Adjustments in the income of an individual or the broader economy and the consequent effects on how much of a good or service is desired.
Law of Diminishing
refers to the principle that as one consumes more of a good, the marginal utility (or satisfaction) obtained from consuming an additional unit decreases.
Substitution Effect
The substitution effect occurs when consumers replace more expensive items with less costly alternatives, influencing demand patterns as prices fluctuate.
Utility-maximizing
The economic principle whereby consumers adjust their consumption of goods and services to achieve the highest level of satisfaction or utility.
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