Definition of Price effect:
The impact that a change in value has on the consumer demand for a product or service in the market. The price effect can also refer to the impact that an event has on somethings price. The price effect consists of the substitution effect and the income effect.
How to use Price effect in a sentence?
- The price effect of gasolines rising cost is that many people are not traveling far from home this holiday season.
- When they decided to raise the price on televisions people bought far fewer due to the price effect consumers experienced.
- I wondered what the price effect would mean for our company and our partners as well, because it was hard.
Meaning of Price effect & Price effect Definition