Danny has 40 hours per week to allocate to work and leisure. He is currently paid an hourly wage of $20 for any hours worked. The gure below illustrates Danny's budget constraint {ECO}. His preferences are reected in the indifference curve {ICU}. Consider instead the hypothetical situation where his employer pays him $40 for the rst 10 hours worked per week, $30 for the next 10 hours [10-20 hours) and $20 for any hours beyond 20 hours. This is shown in the blue budget constraint. BCl , in the gure below. Given Danny's preferences, which of the following statements is correct in this hypothetical situation (compared to the current situation}? [ Tick all that apply; select your answers carefully] [:1 Danny is likely to work more hours. C] Danny is likely to keep working the same number of hours. C] None of the answers in this list apply. C] Danny will be worse off: he will achieve a lower level of utility. [:1 The substitution effect is the main driver of the impact on hours worked. C] Danny is likely to earn and consume more overall. C] The income effect is the main driver of the impact on hours worked