An economy has an upward sloping labor supply curve and a downward sloping labor demand curve in a perfectly competitive labor market. The government is considering a plan to help employers (firms) by offering them a subsidy for each hour of labor they employ. To finance the subsidy, the government will charge a tax on the labor income of workers, for each hour worked. If the tax is set high enough to fully finance the subsidy, which of the following best describes what will happen to total compensation per hour and hours worked as a result of this policy? O a. There will be a decrease in total compensation, as the worker will be taxed, but not receive the subsidy O b. There will be a decrease in total compensation, but we don't know which direction hours worked will move O c. There will be no change in total compensation or hours worked, as the workers will just pass on the cost of the tax to the firm by demanding a higher wage O d. There will be an decrease in total compensation, because the tax and subsidy will both act to reduce wages