 In this module, we will explain one example and through that example, we will learn that how with the change in the price of a commodity, the change that is in the commodity's demand, that demand change is bifurcated in two parts of substitution effect and income effect. Then how that proportion of change that is under income effect that is calculated. So, we will come up with this example where the consumer demand function is expressed like this and consumer is having income rupees 1200, consumer is having initial price of 30. So, at this price, consumer is having initial demand of X1 that is equal to 14 packs. And as we have already calculated that if now consumer income remains same, the nominal income, but his price change, so the consumer will shift its amount from 14 to 16 and he will have the two units more. Now if we calculate that how the change in the price has caused the shift of demand from 14 to this 16, so what was the contribution by the income effect. We have already calculated that the change in the amount of the purchasing power or the change in the income that was required just to make the original consumption of the consumer that was equal to the product of change in price and his initial state of demand. So, initially it was having 14 units multiplied by the change in the price. So, it was the required amount was minus 140 and when we calculate that due to this change, then what is the next purchasing power of the consumer. So, we deduct this change from his initial level of income and we come up with this amount that now it is the that amount of expenditure or that amount of the income that is required to adjust the consumer for the change in his price. Here, if we look, as soon as the consumer's price is less, as a result of that price being less, the consumer will take the response no doubt at the end, change in commodity demand in a positive manner. But when the substitution effect is here, then what will he do in the adjustment that will reduce the purchasing power of the consumer so that the level of income that is less, the purchasing power of the consumer is present on it. So, now that the share price is less, then due to the decrease in the price of the 14 units, it is required to have less income. So, we calculated this and after this, now we calculate that the substitution effect which we first calculated was 15.3 and if we had total change, then from 16, when we do minus 14, we had total which was 14. So, total effect was 2. So, if now from the total effect, we subtract the substitution effect, then we are kept with this 0.7 that is the total change out of this 2 that was contributed through the income effect. Thank you.