noun
income effect
Economic term: the change in consumption caused by a change in real income, holding relative prices constant.
価格が下がると、所得効果によって実質的な購買力が上がる。
When prices fall, real purchasing power rises due to the income effect.
Substitution effect: change in consumption due to a change in relative prices, distinct from the income effect.
Compound of 所得 (income) and 効果 (effect), a direct translation of the English economic term 'income effect'.