In the Market for Magazines, the ʺIncome Effectʺ Means That

Multiple Choice

In the market for magazines, the ʺincome effectʺ means that

A) magazines are usually purchased by people with higher than average incomes.
B) a decrease in the price of a substitute product like books will make magazine readers feel a little poorer than they were before.
C) an increase in the price of magazines will raise the relative price of magazines to books, causing magazine readers to read more books and fewer magazines.
D) an increase in the price of magazines will reduce the total purchasing power of magazine readers, making them able to afford fewer magazines.