Lakisha's labor supply curve is downward sloping for wage rates greater than $40 per hour and upward sloping for wage rates less than $40 per hour.If leisure is a normal good for Lakisha and if the wage is _____,the substitution effect of a wage increase is _____ than the income effect.

A) greater than $40;greater
B) equal to $18;less
C) greater than $40;less
D) greater than $20;less

Labor Supply Curve

A graphical representation showing how the quantity of labor supplied varies with changes in wages, illustrating the relationship between wage levels and the labor force participation rate.

Substitution Effect

A response to price changes in which consumers replace more expensive items with less costly alternatives.

Income Effect

The change in an individual's consumption patterns resulting from a change in their real income.