Assume an individual has a utility function of this form

U(C, L) = 16 + 8(CxL)

This utility function implies that the individual's marginal utility of leisure is 8C and her marginal utility of consumption is 8L. The individual has an endowment of V=$320 in non-labour income and T = 16 hours to either work (h) or use for leisure (L). Assume that the price of each unit of consumption good p=$1 and the wage rate for each hour of work w=$24.

Question: Suppose that there is a shock to this labour market and the competitive market wage rate jumps to $32. Determine whether the substitution or income effect dominates for this individual.