Jake Experiences an Increase in His Wages

Multiple Choice

Jake experiences an increase in his wages. The hours of labor that he supplies to the market would decrease if

A) the income effect is larger than the substitution effect.
B) the substitution effect is larger than the income effect.
C) neither the income effect nor the substitution effect apply to Harry's labor-leisure tradeoff.
D) Jake views both labor and leisure as inferior goods.