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The Income Effect of a Price Increase Causes a Decrease

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The income effect of a price increase causes a decrease in the quantity demanded of a normal good.


Definitions:

Autonomy

The capacity to make an informed, uncoerced decision or the quality of being independent and self-directing.

Archetype

Universal, symbolic images that appear across cultures and time periods, embedded in the collective unconscious, as identified by Carl Jung.

Social Interest

A concept in psychology that refers to an individual's inclination towards being cooperative and contributing to the welfare of others in society.

Anima

A term from Jungian psychology referring to the unconscious feminine side of a man.

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