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Utility Function
A numerical model that explains how a consumer gains pleasure or usefulness from using goods and services.
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility level constant.
Income Effect
The alteration in the income of a person or the economy, and its effect on the amount of a product or service that is requested.
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, causing consumers to substitute away from more expensive goods towards cheaper ones.
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