answersLogoWhite

0


Best Answer

The income effect is the change in an individuals or economy's income and how that change will impact the quantity demanded. For example, after a raise, John Doe would desire more products, because he has greater disposable income.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Define and give an example of the income effect?
Write your answer...
Submit
Still have questions?
magnify glass
imp