The more money that operson makes, the more they are willing to spend. income effect totol revenue substitute effect diminishing morgino utility

## Step 1<br />The problem presents a scenario where an individual's income increases, leading to an increase in their spending. This is a classic example of the income effect in economics.<br /><br />## Step 2<br />The income effect is a concept in economics that explains how changes in income can affect consumer behavior. In this case, as the individual's income increases, they have more disposable income to spend.<br /><br />## Step 3<br />The other options provided, such as total revenue, substitute effect, and diminishing marginal utility, do not accurately describe the scenario presented in the problem. <br /><br />### Total revenue refers to the total income generated from the sale of goods or services. It does not directly relate to the individual's spending behavior.<br /><br />### The substitute effect refers to the change in consumption patterns due to a change in the price of a good or service. It does not directly relate to the individual's spending behavior.<br /><br />### Diminishing marginal utility refers to the decrease in satisfaction or utility that a consumer experiences as they consume more units of a good or service. It does not directly relate to the individual's spending behavior.