Respuesta :
If the price of a good changes, and this results in income effect and the substitution effect reinforcing one another, this means good is normal.
What is substitution effect?
The substitution effect is one of two factors that affect how much a change in a good's price has an impact on how much of that good a customer demands, with the other being the income effect, in economics and more specifically in consumer choice theory. If, in a hypothetical scenario, the same consumption bundle were to be maintained, income would become available as a good's price drops and could then be used to purchase a combination of more of each of the products. In comparison to the previous total consumption bundle, the new one now takes into account the effects of both the increased relative prices of the two commodities and the money that was made available. The impact of a relative price change is known as the substitution effect, but the impact of income freedom is known as the freeing up of income impact.
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