Suppose in a competitive labor market, the wage rate initially is 100 > 0. Liz and Kate choose leisure and consumption to maximize their utility. Everyone has a total number of T = 1600 hours per year to allocate between work and leisure. Liz and Kate have the same nonlabor income but they have different preferences over leisure and consumption. For both Liz and Kate, marginal utilities from leisure and consumption are always positive. Moreover, leisure is a normal good for both Liz and Kate. However, when a wage rate increases, the income effect dominates the substitution effect for Liz. But for Kate, the substitution effect of a wage increase dominates the income effect. Which of the following statements is correct? (a) If nonlabor income and wage rate both increase, Kate would denitely work less. (b) If nonlabor income and wage rate both increase, Liz would denitely work less. (c) If nonlabor income and wage rate both increase, it is unclear whether Liz would work more or less. (d) If nonlabor income increases and wage rate decreases, Kate would denitely work more. (e) If nonlabor income decreases and wage rate increases, Kate would denitely 00113111116 more. (f) If nonlabor income decreases and wage rate remains the same, Liz would work more but Kate would work less