By changing the amount of income a consumer has to spend, a change in the price of one good may affect the quantity demanded of another good.

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This is known as the income effect. When the price of one good changes, it can change the consumer's purchasing power and therefore affect the quantity demanded of other goods. If the price of a good increases and a consumer's income remains the same, they may have less money to spend on other goods and therefore decrease their quantity demanded of those goods. On the other hand, if the price of a good decreases, a consumer may have more money to spend on other goods and increase their quantity demanded of those goods.

By Changing the Amount of Income a Consumer Has to Spend