-What does "B" represent on the diagram?
Definitions:
Income Effect
The change in an individual's consumption resulting from a change in their income.
Normal Good
A good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.
Income Effect
The impact of income fluctuations on an individual or an economy on the quantity of goods or services that is demanded.
Price Decreases
A reduction in the cost at which goods and services are sold, making them more affordable to consumers.
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