When the Price of Coffee Increases, Uchenna Buys Less Coffee

Multiple Choice

When the price of coffee increases, Uchenna buys less coffee, but he also buys fewer magazines. What explains why Uchenna buys fewer magazines?

A) the substitution effect because the price of magazines increased relative to the price of coffee
B) the substitution effect because magazines and coffee must be substitute goods
C) the income effect because Uchenna's purchasing power decreased
D) the income effect because Uchenna's purchasing power hasn't changed