4.2 Income and Substitution Effects The effect of a price change on the quantity demanded of a good can be broken into two parts: a substitution effect,in which satisfaction remains constant while price changes an income effect,in which the price remains constant while satisfaction changes. 4.2 Income and Substitution Effects ❑ The effect of a price change on the quantity demanded of a good can be broken into two parts: ✓ a substitution effect, in which satisfaction remains constant while price changes ✓ an income effect, in which the price remains constant while satisfaction changes