21. The Income and Substitution effects of a wage increase " The Income and Substitution effects of a wage increase" 22. The substitution effect increases consumption of washing from Q1 to QS, and the income effect from QS to Q2. 23. One is based on the " gene-model effects ", while the other is based on the " genotype substitution effects " 24. This difference is attributable to the behavioural changes induced by a distortionary tax that are measured by a substitution effect . 25. Some economists predict that a substitution effect will spur demand for alternate energy sources, such as coal or liquefied natural gas. 26. As the price of a commodity falls, consumers move toward it from relatively more expensive goods ( the substitution effect ). 27. If the good is an " inferior good ", then the income effect will offset in some degree the substitution effect . 28. The total effect of the price drop on quantity demanded is the sum of the substitution effect and the income effect. 29. The result is a substitution effect because of the decreased relative price, but also an income effect due to the increased real income. 30. An example would be the hypothetical separation of the income effect and the substitution effect of a price change, which actually go together.
