Currently you work for 40 hours per week at the wage rate of 20 an hour. Your free hours are defined as the number of hours not spent in work per week, which in this case is 24 hours 7 days 40 hours = 128 hours per week. Suppose now that your wage rate has increased by 25%. If you are happy to keep your total weekly income constant, then:

(select one correct answer)

a.

Your total number of working hours per week will be 30 hours.

b.

Your total number of working hours per week will fall by 25%.

c.

Your total number of free hours per week will increase by 25%.

d.

Your total number of free hours per week will increase by 6.25%.