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(20 points) Efe is employed by Beads and Baubles as a Jewelry Designer. She is able to select the number of hours she works per
(20 points) Efe is employed by Beads and Baubles as a Jewelry Designer. She is able to select the number of hours she works per week. Efe is currently earning $20 per hour and is working 35 hours per week. Because of the success of her designs, she receives a promotion to Senior Jewelry Designer; this promotion is accompanied by an increase in pay to $30 per hour. Following her promotion, Efe increases her work hours from 35 to 40 hours per week. Based on this information, do we observe a dominant income effect or a dominant substitution effect? Explain your answer in terms of the labor/leisure tradeoff
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