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4. In the picture below, R represents hours of leisure; labor supply is L = 24 - R; C represents consumption. The price of consumption,

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4. In the picture below, R represents hours of leisure; labor supply is L = 24 - R; C represents consumption. The price of consumption, Pc = $1. Wage decreases from wold to wnew C wnew 24wold wold Fold Uold 24wnew Fnew Unew Rold Rnew R 24 What happens to labor supply when wage decreases? Explain how the income and substitution effects work here

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