Which of the following statements best states the effect of a permanent wage? increase?
a) For a permanent wage? increase, the income effect is likely to be less than the substitution? effect, and thus the amount of labor supplied will rise.
b)For a permanent wage? increase, the income effect is likely to be less than the substitution? effect, and thus the amount of labor supplied will fall.
c)For a permanent wage? increase, the income effect is likely to exceed the substitution? effect, and thus the amount of labor supplied will fall.
d)For a permanent wage? increase, the income effect is likely to exceed the substitution? effect, and thus the amount of labor supplied will rise.