Examlex
Soil in regions with high rainfall or in low-lying areas associated with poor drainage form through the process of
Income Effect
The modification of income for people or economies and how this adjustment affects their purchasing desires for goods or services.
Inferior Good
A type of good for which demand decreases as the income of the consumer increases, typically because consumers can afford better alternatives.
Substitution Effect
The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another more or less expensive good.
Income Effect
The change in an individual's or an economy's consumption resulting from a change in real income.
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