When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the

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The described effect is known as the income effect. When the price of a product increases, the consumer's purchasing power decreases, meaning they are able to buy less with their given income. This is caused by the fact that they must allocate more of their income to buying the same amount of the higher-priced product, leaving less income available for other purchases.

When the Price of a Product Increases, a Consumer Is