Home >

What Is The Income Effect?

2010/6/25 18:59:00 37

Income Effect

The income effect is that when consumers buy two kinds of goods, the nominal price of a commodity decreases, which can increase the purchasing power of the existing monetary income and purchase more commodities to achieve a higher level of effect.

  • Related reading

What Is The Substitution Effect?

Financial Dictionary
|
2010/6/25 18:59:00
42

What Is Budgetary Line?

Financial Dictionary
|
2010/6/25 18:57:00
55

What Is Indifference Curve?

Financial Dictionary
|
2010/6/21 20:59:00
35

What Is Marginal Utility?

Financial Dictionary
|
2010/6/21 20:58:00
33

What Is Total Utility?

Financial Dictionary
|
2010/6/21 20:57:00
18
Read the next article

What Is The Price Consumption Curve?

Price consumption curve: we call the equilibrium point of the best purchase caused by the change of commodity price, the price consumption curve.