Hicksian Decomposition decomposes the total change in consumption from a [ Select ] ["change in Income", "change in the price of a good", "change in the price of a related good", "change in tastes and preferences"]into the effect due to [ Select ] ["a good being normal or inferior and the change in income", "two goods being complements or substitutes and the effect of a change in income", "the change in relative price and the change income", "the change in relative price and the change in the price of a related good", "the change due to goods being substitutes/complements vs. being inferior or normal"].

In Hicksian Decompostion, a key distinction is made between money income (the amount of dollars a person has to spend on two goods) and income broadly defined (the number of attainable bundles a person can choose between).

If a person's income increases from $10,000 to $20,000 and the price of goods the person chooses between changes, [ Select ] ["his income broadly defined has increased", "his income broadly defined has decreased", "his income broadly defined increase no matter what happens to the price of goods", "it is uncertain whether income broadly defined has increased or decreased", "his income broadly defined has increased if the price of both goods rises", ""].

The effect of these two changes are called the Substitution Effect and the Income Effect.

The Substitution Effect shows the [ Select ] ["in quantity demanded of the good whose price is not changing", "in income", "in the relative price of the good that does change", "in the relative price of the good whose price has changed keeping income broadly defined constant", "in the quantity demanded of the good while keeping income broadly defined constant", "in the quantity demanded of the good while keeping money income constant"].

The Income Effect shows the [ Select ] ["change in quantity demanded from a change in money income", "change in quantity demanded when the MRS of the good on the horizontal axis increases", "change in quantity demanded when the MRS of the good on the horizontal axis decreases", "change in quantity demanded from inflation", "change in quantity demanded from deflation", "change in money income", "change in quantity demanded from the change income broadly defined from a change in the price of a good"].