In labor markets, a change in wages has both an income and a substitution effect. An increase in wages causes an increase in real income; at the same time, the relative price of leisure increases for the worker. Supposse that an increase in the wage rate causes an individual to work less. In this case, which effect dominates the other, the substitution or the income effect? (Hint: Think about the impact that each effect has on the quantity- hours of work and compare. The net effect substitution effect plus income effect on working hours is negative).