what does the income effect depict 
the income effect is a part of consumer choice theory which relates preferences to consumption expenditures and consumer demand curves that expresses how changes in relative market prices and incomes impact consumption patterns for consumer goods and services in other words it is the change in demand for a good or service caused by a change in a consumer s purchasing power resulting from a change in real income this income change can be the result of a rise in wages etc or because existing income is freed up by a decrease or increase in the price of a good that money is being spent on 