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Figure: Davina's Labour Supply Choice 
-(Figure: Davina's Labour Supply Choice) The figure Davina's Labour Supply Choice shows Davina's time allocation budget line when her hourly wage is $10 or $15 and she has 80 hours to allocate between labour and leisure;it also shows two of her indifference curves for income and leisure.As Davina's hourly wage rises from $10 to $15:
A) the income effect is greater than the substitution effect.
B) the substitution effect is greater than the income effect.
C) the substitution effect is equal to the income effect.
D) It is impossible to compare the income and substitution effect.
Correct Answer:
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Figure: Joanna's
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