7. Consider an individual who had been planning to retire in five years. Unfortunately, they've just been laid off and the highest-paying job they've been able to find pays a lower hourly wage than did their previous job.

a) Using the concepts of the income and/or substitution effect, describe why we might expect this individual toretire earlierthan they originally planned.

b) Using the concepts of the income and/or substitution effect, describe why we might expect this individual toretire laterthan they originally planned.