Using below statment answer/replyin 150 words
An income effect occurs when a price change causes a person to jump to a higher or lower indifference curve. For instance if I had money to spend on either playing hockey or eating pizza and the price of one of them decreases then I may decide that since I have more money I can buy more of both items by jumping to a new indifference curve.
A substitution effect occurs when a price change causes a person to move along the same indifference curve adjusting the quantities of each item. Using my example from above if hockey increased in price I may substitute some of the hockey for more pizza. Therefore I moved along the indifference curve by decreasing hockey and replacing it with an increase in pizza.