Kurt is a self-employed flight instructor. He specializes in seaplanes and provides lessons to many individuals in the community. Kurt's hourly rate for lessons is $100 per hour plus the cost of fuel. The demand for Kurt's services has increased due to a rise in popularity of seaplanes. Because of this, he has increased his hourly rate for lessons to $125 per hour. Assume that customer demand is such that Kurt can work as many or as few hours as he desires. You observe that after Kurt increases the hourly rate for lessons, he chooses to work more hours and consumes fewer leisure hours. In answering the questions below, invoke ceteris paribus and assume that the only things changing are Kurt's hourly rate and his preferred number of work hours. (3 points) Explain the income effect and its impact on Kurt's preferred number of hours worked and leisure hours consumed. (3 points) Explain the substitution effect and its impact on Kurt's preferred number of hours worked and leisure hours consumed