Examlex
Describe the three capabilities commonly offered by an EIS.
Substitution Effect
The change in consumption patterns due to a change in relative prices, prompting consumers to substitute a product that has become relatively cheaper for one that has become relatively more expensive.
Marginal Rate
A rate that indicates the change in a variable (such as cost, revenue, or tax) as its underlying factor changes incrementally.
Substitution
The action of replacing one good or service with another based on changes in relative prices, incomes, or preferences.
Indifference Curve
A graph showing different combinations of two goods that provide the same level of utility or satisfaction to a consumer.
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