When portions of a sound are replaced by a potential masker, the missing fragments may be perceptually restored, resulting in apparent continuity of the interrupted signal. This phenomenon has been examined extensively by using pulsation threshold, auditory induction, and phonemic restoration paradigms in which two sounds, the inducer and the inducee, are alternated (ABABA...), and the conditions required for apparent continuity of the lower amplitude inducee are determined. Previous studies have generally neglected to examine concomitant changes produced in the inducing sound. Results from the present experiments have demonstrated decreases in the loudness of inducers using inducer/inducee pairs consisting of tone/tone and noise/noise, as well as the noise/speech pairs associated with phonemic restorations. Interestingly, reductions in inducer loudness occurred even when the inducee was heard as discontinuous, and these decreases in loudness were accompanied by graded increases in apparent duration of the inducee, contrary to the conventional view of auditory induction as an all-or-none phenomenon. Under some conditions, the reduced loudness of the inducer was coupled with a marked alteration in its timbre. Especially profound changes in the inducer quality occurred when the alternating stimuli were tones having the same frequency and differing only in intensity--it seems that following subtraction of components corresponding to the inducee, an anomalous auditory residue remained that did not correspond to the representation of a tone.