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Use the following to answer questions
Figure and Table: The Budget Line
-(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. _____ in the price of clams would rotate the budget line along the _____ axis _____ the origin.
Perfect Substitutes
Goods or services that can be used in place of one another with no loss of utility or satisfaction.
Income Effect
Refers to adjustments in consumer behavior as a result of changes in purchasing power, influencing the demand for products and services.
Substitution Effect
The change in consumption patterns due to a change in relative prices, where consumers substitute a cheaper alternative for a more expensive good.
Price
The cash value expected, required, or contributed in transaction for an item.
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