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Income Effect
General scientific definition
"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." (Investopedia, https://www.investopedia.com/terms/i/incomeeffect.asp)
Together with the substitution effect it creates the 'price effect'.
Relevant substantive theories
Micro-economics
Consumer choice theory
Sources
Any handbook on micro-economics
Examples
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