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Electromagnetic waves
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute a cheaper good for a more expensive one.
Income Effect
The alteration in a person's or an economy's earnings and the effect this alteration has on the demand for a product or service.
Price Change
An alteration in the cost of goods or services, which can go up or down, depending on various factors.
Diamond/Water Paradox
An observation in economics illustrating how water, which is essential to life, is cheap, while diamonds, which do not sustain life, are expensive.
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