What does Income Effect mean?
The change in demand for a good or service caused by a change in a consumer's purchasing power resulting from a change in real income.
The Income Effect explains how a price drop for a good increases a consumer's real purchasing power, allowing them to buy more.
Income Effect in German, French, Spanish and Italian
GermanEinkommenseffekt
Nachfrageänderung infolge einer Änderung der realen Kaufkraft.
FrenchEffet de revenu
Variation de la consommation due à la modification du pouvoir d'achat.
SpanishEfecto renta
also Efecto ingreso
Cambio en la demanda provocado por una variación en el poder adquisitivo del consumidor.
ItalianEffetto di reddito
Variazione del consumo dovuta al cambiamento del reddito reale del consumatore.
Synonyms and opposites for Income Effect
- Synonym Purchasing power effect