André has asked his boss for a pay raise.His boss is concerned that,if he increases André's wage,André might work less.In other words,André's boss is concerned that leisure is a normal good for André and that his:

A) income and substitution effects might move in the same direction.
B) income effect might be greater than his substitution effect.
C) substitution effect might be greater than his income effect.
D) income and substitution effects might cancel out to zero.

Income Effect

The change in the quantity of a good consumed that results from the change in a consumer’s purchasing power due to the change in the price of the good.

Substitution Effect

The adjustment in consumer behavior because of shifts in the prices of goods relative to each other, causing consumers to choose different goods over previously preferred ones.

Normal Good

A good whose demand increases as consumer income increases, demonstrating how economic well-being influences consumer choices.