Explain what Is Meant by Income and Substitution Effects of a Price Change and Discuss why These Might Be Different for Different Type of Goods

There are two types of good- normal good and inferior good that will be discussed. A normal good is affected by income positively. That means as income increased quantity decreases. Note that when it says income, income goes up, it means the real income or the purchasing power of the consumer. An inferior good, however, a good that may in the consumer eyes be the sign of cheapness, inferior quality, consumers will buy less of the product when their purchasing power increases because they can now buy better goods.…