Income effects were ruled out by giving one third of the participants mugs, one third chocolates, and one third neither mug nor chocolate.
22.
At the same time, the price reduction increases consumer purchasing power, known as the income effect ( an outward shift of the budget constraint ).
23.
Where the supply curve is sloping upwards to the right ( showing a positive wage elasticity ), the substitution effect is greater than the income effect.
24.
The added worker effect results when the income effect dominates the substitution effect in an individual's decision whether or not to participate in the labor market.
25.
In basic microeconomics consumer theory, this will then lead to an income effect : consumers buy less in general ( inwards shift of the budget line ).
26.
In normal situations, as the price of a resource increases, the income effect dominates, leading people to buy more of the good, even as its price rises.
27.
Female income effects from migration will only kick in if there are sufficient differences between males and females too, so long term changes will likely not happen quickly.
28.
For added workers to enter the labor market when earning power decreases, the negative income effect must outweigh the positive substitution effect ( Mincer, p . 68 ).
29.
"What really remains to be seen is what the income effect is going to be " in Southeast Asia and South Korea, said Keith Collins, USDA's chief economist.
30.
The effect of the relative price change is called the " substitution effect ", while the effect due to income having been freed up is called the " income effect ".
