Select from the below the answer to complete the sentence.

a) When the wage increases, the substitution effort is due to the fact that:

• It takes more labour to consume the same quantity
• The consumer is less willing to trade good labour against consumption
• The foregone income from his hour of lecture now is higher
• Every hour worked is now worth more in terms of consumption

b) True or False? If leisure is a normal good for Samantha increase in the labour tax rate necessarily means Samantha pays more in labour tax ?

• True
• False