Does the Concept of Valence Apply to First or Second

question 65

Essay

Does the concept of valence apply to first or second order needs? Justify your answer.

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Definitions:

Budget Constraint

A limitation on the consumption choices of individuals or firms, dictated by their income and prices of goods.

Budget Constraint

A budget constraint represents the combinations of goods and services that a consumer can purchase given their income and the prices of those goods and services.

DVDs

Optical disc storage format used to store high capacity data like movies, software, and other digital content.

CDs

Short for Certificates of Deposit, which are savings certificates with a fixed maturity date and specified fixed interest rate that are issued by banks.