Substitution effect
The same concepts also apply if the price of one good goes up instead of down, with the substitution effect reflecting the change in relative prices and the income effect reflecting the fact the income has been soaked up into additional spending on the retained units of the now-pricier good. For example, consider coffee and tea: if the price of coffee increases, consumers of hot drinks may decide to start drinking tea instead, causing the demand for tea to increase (and vice versa).
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