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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With I
  5. Income Effect

Income Effect

Definition of 'Income Effect'

The Income Effect of a price change is the adjustment of demand to the change in real income alone.

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Related Terms

Announcement EffectSubstitution EffectIncome DistributionIncome Elasticity of DemandIncome GearingUnrelated Business Taxable IncomeAccumulation SharesAfter Tax IncomeAverage Tax RateBusiness RiskFiscal DragParadox of ThriftBankruptcyBeta UngearedClientele EffectComparative Static AnalysisCurrent Cost AccountingEarnings DilutionEfficiency WagesExcise Duty

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