The change in demand resulting from this change in real purchasing power is called:

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The change in demand resulting from a change in real purchasing power (i.e. income) is called the income effect. This occurs because as the consumer's income changes, their ability to purchase goods and services also changes, leading to a shift in their demand for certain goods and services. The substitution effect and price effect refer to changes in demand due to changes in relative prices, while the wealth effect refers to a change in demand resulting from a change in the value of a consumer's assets.

The Change in Demand Resulting from This Change in Real