The income effect explains why there is usually a direct relationship between the price of product and the quantity of the product demanded.

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The income effect explains how a change in the price of a good affects consumer purchasing power, not necessarily leading to a direct relationship between the price of a product and the quantity demanded. The law of demand, which states that there is an inverse relationship between price and quantity demanded, is more directly related to this concept.

The Income Effect Explains Why There Is Usually a Direct