John Is an Entrepreneur Who Runs His Own Auto Body

Multiple Choice

John is an entrepreneur who runs his own auto body repair shop.John's business is booming, and his salary is rising.John's labor supply curve will be:

A) upward sloping if the substitution effect is smaller than the income effect.
B) downward sloping if the substitution effect is smaller than the income effect.
C) horizontal if the substitution effect is equal to the income effect.
D) vertical if the substitution effect is equal to the income effect.