Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) As the wage rate rises, the substitution effect decreases the opportunity cost of leisure and causes a worker to devote more time to working and less time to leisure.
B) As the wage rate rises, the substitution effect increases the opportunity cost of leisure and causes a worker to devote more time to working and less time to leisure.
C) As the wage rate rises, the income effect increases the opportunity cost of leisure and causes a worker to devote more time to working and less time to leisure.
D) As the wage rate rises, the income effect causes a worker to devote more time to work and less time to leisure.