Threshold Effect
The "Threshold Effect" refers to a phenomenon where a certain level or point must be reached before a specific outcome occurs. In various fields, such as psychology and environmental science, this effect indicates that changes or responses do not happen gradually but rather suddenly once a critical threshold is crossed. For example, in ecology, a small increase in pollution may not harm an ecosystem until it surpasses a certain threshold, leading to significant damage.
In economics, the threshold effect can be observed in consumer behavior, where spending increases only after income reaches a specific level. This concept helps researchers and policymakers understand how systems respond to gradual changes and the importance of identifying critical points for effective intervention.