Jenny's Hourly Wage Rate Was Increased from $17 to $21

Multiple Choice

Jenny's hourly wage rate was increased from $17 to $21. As a result of the wage increase, Jenny desires to work fewer hours and take more hours of leisure. For Jenny

A) the income effect must be zero.
B) the substitution effect dominates the income effect.
C) the income effect dominates the substitution effect.
D) the substitution effect must equal the income effect.