Can someone explain the the substitution effect and income effect to me?

Question

domebotnos · Answer

@Algorithmic

anonymous · Answer

Hello,

I will explain the two effects in separate paragraphs. If you are still confused after my explanation do not be hesitate to ask for me to elucidate. 

$$\textbf{The Substitution Effect:}$$The substitution effect occurs when consumers react to an increase in a good’s price by consuming less of that good and more of other goods. 

$$\textbf{The Income Effect:}$$The income effect happens when a person changes his or her consumption of goods and services as a result of a change in real income. 

Peace.

domebotnos · Answer

I understand thank you again :) @Algorithmic

anonymous · Answer

You are welcome.

Peace.