Properly graph the income and substitution effects and explain each of the following situations:

1. The effect of an increase in nonlabor income on the hours of labor supplied by the worker, assuming he perceives leisure as an inferior good.

2. The effect of a decrease in the market wage rate on the hours of labor supplied by the worker, assuming she perceives leisure as a normal good and the income effect of the decrease in wages dominates the substitution effect.