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Yes, Price effect = substitution effect + income effect
facts
I cannot see the terms, but it may be purchasing power.
exon
As demand rises, people will substitute other products.
substitution effect and income effect :) 100% accurate
chnage in consumer's equilbrium due to change in income of the consumer..known as income effect.
Substitution effect
A backward linkage is an effect in which increased production by a downstream manufacturer provides positive pecuniary externalities to an upstream manufacturer.
substitution effect is the explanation for the downward slope of the aggregate damnd curve.
As the price of a good rises, people will substitute other products.
It is your girlfriend.