Credit Balance Definition.

A credit balance is the amount of money that a customer has available to spend on future purchases. The credit balance may be used to purchase goods or services from the company, or it may be applied to the customer’s account balance. The credit balance definition may vary depending on the company’s accounting practices. For … Read more

Substitution Effect Definition.

The substitution effect is the change in consumption that results from a change in the price of a good. The substitution effect occurs because a change in price alters the relative price of two goods, making one relatively more expensive than the other. This encourages consumers to substitute the more expensive good for the less … Read more