In the diagram on the right the consumer's original budget line is L , and the consumer buys the amount of good X at point A. Then the price of good X Increases dramatically so that the consumer's now budget line shifts to La, After the price increase the consumer buys the amount of good X at point C. The substitution effect due to the price change is the movement from point B to point A The income effect due to the price change is the movement from point Good Y point Based on the income effect, good X is good GoodA