What can we say about the substitution effect along a labor supply curve when wages are increased?
Group of answer choices
As wages increase, the opportunity cost of leisure decreases. Therefore, individuals reduce their quantity of leisure demanded.
As wages increase, the opportunity cost of working increases. Therefore, individuals reduce their quantity of labor supplied.
As wages increase, the opportunity cost of working decreases. Therefore, individuals increase their quantity of leisure demanded.
As wages increase, the opportunity cost of leisure increases. Therefore, individuals increase their quantity of labor supplied.