Suppose wages in the market for plumbers increase. Some plumbers start taking on extra plumbing jobs while others cut back on the number of hours they work. What could explain? this?
A. For those plumbers who choose to work? more, the substitution effect? (on leisure) of the wage increase is weaker than the income effect. For those who decided to work? less, the reverse is true.
B. For those plumbers who choose to work? more, the substitution effect? (on leisure) of the wage increase is stronger than the income effect. For those who decided to work? less, the reverse is true.
C. For those plumbers who choose to work? less, the substitution effect? (on leisure) of the wage increase is exactly offset by the income effect.
D. For those workers who choose to work? less, there is no substitution effect to offset the income effect.