Question

In the market for magazines, the "income effect" means that

Answer 1

The income effect shows a change in someone or the economy's income and how it changes the quantity of a good or service. If one is making more, they are usually buying more of something. If someone is making less, they are often buying less of something.

In the market for magazines, the "income effect" means that if the price of a magian rises magazine readers will purchase less magazines.