The income effect states that if a change in prices causes consumers to have lower real incomes, then consumers would demand a greater quantity of goods than normal. demand a lesser quantity of goods than normal. demand the same quantity of goods as normal. stop demanding a good.

The Income Effect states that if a change in prices causes consumers to have lower real incomes, then consumers would  demand a lesser quantity of goods than normal.

Explanation:

In microeconomics, it is understood as the income effect one of the effects caused by the variation in the price of a product on its demand.

The income effect corresponds to the variation in the quantity demanded of a good (or service) as a result of the modification of the purchasing power caused by a change in the price of the good in question. When the price of a good changes, the purchasing power changes. If the price of the good falls, the purchasing power increases as the consumer can consume more units of that good or other goods. If the price of a good increases, its purchasing power falls since now its income reaches it for less units of the good while it has less resources to buy the other goods

interdependence is when all participating groups and individuals depend on each other. if you depend on one anothers goods, you end up trading in order to get the items you're looking for. (for ex: if i have food and you have water, we trade in order to depend on each other to live)

currancy

explanation: