Demand and supply| ආදේශන ප්‍රතිවිපාකය ආදායම් ප්‍රතිවිපාකය | substitution effect and income effect | скачать в хорошем качестве

Demand and supply| ආදේශන ප්‍රතිවිපාකය ආදායම් ප්‍රතිවිපාකය | substitution effect and income effect |

#econok, #demandandsupply, #education, #EconSinhala, #econok , #demand, supply The substitution effect refers to the change in the quantity demanded of a good or service when its price changes, causing consumers to substitute it with a similar good or service. This effect occurs when a price increase for one good leads consumers to buy more of a less expensive alternative, and vice versa. The income effect describes how a change in a consumer's real income affects their demand for goods and services. When the price of a good decreases, it effectively increases the consumer’s real income, enabling them to purchase more of that good or other goods. Conversely, when the price of a good rises, the consumer's real income is reduced, leading to a decrease in demand.