Yes, Price effect = substitution effect + income effect
consumers buy the item as a substitute for other more costly items
consumers buy the item as a substitute for other more costly items
consumers buy the item as a substitute for other more costly items
facts
I cannot see the terms, but it may be purchasing power.
substitution effect and income effect :) 100% accurate
As demand rises, people will substitute other products.
exon
chnage in consumer's equilbrium due to change in income of the consumer..known as income effect.
Substitution effect
substitution effect is the explanation for the downward slope of the aggregate damnd curve.