In Most States, There Is a Mandatory Maximum Number of Children

Multiple Choice

In most states, there is a mandatory maximum number of children allowed per day care worker. If this maximum number is binding, then if the wages of day care workers goes up, the main effect on day care employment will be through

A) the scale effect.
B) the substitution effect.
C) it will be equally shared between the substitution and scale effect.
D) neither the scale nor the substitution effect as labor demand will not change.