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单词 income effect
释义
income effect
noun[C]
uk
us
ECONOMICS
theeffectofchangesin things such asprices,taxes, andcostsofserviceson people'sincomes:
Thehighertheproportionofborrowingthat is atvariableinterestrates, thebiggertheincomeeffectwheninterestratesrise.
(Definition ofincome effectfrom theCambridge Business English Dictionary© Cambridge University Press)

Examplesofincome effect

income effect
This means demand for these goods is perfectly inelastic; theincomeeffectequals the substitution effect.
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An example would be the hypothetical separation of theincomeeffectand the substitution effect of a price change, which actually go together.
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This explains the negativeincomeeffecton consumption.
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This is termed the wealth effect (compareincomeeffect), and is generally attributed to psychological feelings of confidence one feels rich, so one spends.
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The first term on the right-hand side represents the substitution effect, and the second term represents theincomeeffect.
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The book decomposes the change into the substitution effect and theincomeeffect.
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However, given the pro-cyclical nature of labor, it seems that the above substitution effect dominates thisincomeeffect.
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Then theincomeeffectfrom the rise in purchasing power from a price fall reinforces the substitution effect.
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In addition, purchasing power from the price decline increases ability to buy (theincomeeffect).
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Indirect rebound effects come about from theincomeeffectas decreased costs enables increased household consumption of other goods and services.
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These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.
#https://dictionary.cambridge.org//dictionary/english/income-effect##
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更新时间：2025/2/10 20:20:01