through labor supply theory that describes how people determine their optimal working hours. Using a few examples, explain how individuals determine their optimal working hours. Your explanation should include the following points in detail:

a. Explain the general rules that people follow to determine optimal working hours. This explanation should include a discussion of diminishing marginal returns.

b. Explain the idea behind the income and the substitution effect and include an example for each.

Make sure that your response flows naturally and is not just a list of answers to the questions above.

WARNING: Do not talk about substitution between purchasing different goods or substitution between labor and capital.