For most goods,the income effect has no significant effect on individual consumption.

Question

Quizplus · Accepted Answer

The income effect is the change in consumption of a good or service that results from a change in income. For most goods, the income effect is positive, meaning that as income increases, consumption of the good or service also increases. However, for some goods, the income effect is negative, meaning that as income increases, consumption of the good or service decreases.

For Most Goods,the Income Effect Has No Significant Effect on Individual