【正确答案】 C

【答案解析】The effect of an increased wage on the amount of labor an individual will supply will depend on the relative strength of the income and substitution effects. The substitution effect leads to an increase in labor supplied as less leisure is consumed because its opportunity cost is increased. The income effect leads to less labor supplied as the wage increase and resulting higher income leads to greater consumption of leisure (less hours of labor supplied). For example, with a wage increase to $1,000 per hour, some workers will choose to reduce the number of hours they work, rather than increase them.