normal 0 false false false en-in x-none


The income effect is the fact that as a person's income enhances (or the price of item goes down [which effectively enhances command over goods] more of everything will be demanded.  The income effect suggest that as income goes down (price enhances) then less of the commodity will be purchased.

 

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Microeconomics: normal 0 false false false en-in x-none
Reference No:- TGS0415765

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