Suppose That Elmer's Hourly Wage Increases, and He Decides to Work

Multiple Choice

Suppose that Elmer's hourly wage increases, and he decides to work fewer hours. For Elmer, the substitution effect of the wage change is

A) only partially offset by the income effect.
B) more than offset by the income effect.
C) exactly offset by the income effect.
D) We do not have enough information with which to answer the question.