If Sara Receives a Pay Increase from $15 to $16

Multiple Choice

If Sara receives a pay increase from $15 to $16 an hour and she chooses to

A) work more, then the income effect is equal to the substitution effect.
B) take more vacation, then the income effect is weaker than the substitution effect.
C) take more vacation, then the income and substitution effects are working in the same direction with regard to leisure because it is a normal good.
D) work more, then the substitution effect for leisure demand is stronger than the income effect.