The price of the normal good has increased therefore its demand will fall. Therefore the demand for substitute products will increase. This is substitution effect.
A decrease in the PP of the consumer will also result in a fall for the demand of the normal product whose price has increased and a rise in the demand of its substitutes whose prices remain the same (ie lower than the normal good considered). This is income effect.
Hello.
The price of the normal good has increased therefore its demand will fall. Therefore the demand for substitute products will increase. This is substitution effect.
A decrease in the PP of the consumer will also result in a fall for the demand of the normal product whose price has increased and a rise in the demand of its substitutes whose prices remain the same (ie lower than the normal good considered). This is income effect.
Got it…thank u!