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Consumer Equilibrium
A state where the consumer has allocated their resources in such a way that maximizes their utility, given their budget constraint.
Income And Substitution Effects
The changes in quantity demanded of a good due to a change in income (income effect) or a change in price leading consumers to substitute one good for another (substitution effect).
Demand Curve
A visual chart that illustrates how the quantity of a product demanded by customers varies according to its price.
Consumer Equilibrium
The point at which the satisfaction obtained from a good or service equals the price paid for it, maximizing utility.
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