Which the following statement is correct for a typical worker? a) Both the income and substitution effects of a higher wage encourage more work. O b) The substitution effect of a higher wage...

Extracted text: Which the following statement is correct for a typical worker? a) Both the income and substitution effects of a higher wage encourage more work. O b) The substitution effect of a higher wage encourages less work, and the income effect encourages more work. c) The substitution effect of a higher wage encourages more work, and the income effect encourages less work. d) Both the income and substitution effects of a higher wage encourage less work.