The income effect refers to the imapct of a change in..??

Question

income on the price of good

the general price level caused by change in the price of another good.

the price of a good on real income...

the price of a substitute for the good under consideration

demand when income changes

Answer 1

"The income effect refers to the imapct of a change in demand when income changes".

Answer 2

In the income effect of a change in the price of one of the goods is generally decomposed into the substitution effect and the income effect.  The substitution effect is the change in the quantity of that good consumed when the budget constraint reflects the new relative prices, but keeps the agent on the original indifference curve.  The income effect is then the change in the quantity of that good consumed when the budget constraint is shifted holding its slope constant to intersect with the new endowment point.