Which of the following describes the substitution effect? (1 point)
As wages increase, an individuals leisure becomes less costly, making him
more likely to choose leisure over labor. As hamburgers becomes cheaper
consumers purchase more steak.
As wages increase, an individual's total potential income rises, making him
less likely to choose leisure over labor. As a consumer increases their income
they purchase more desserts, a normal good.
As wages increase, an individual's total potential income rises, making him
more likely to choose leisure over labor. A consumer buys more milk each time
they purchase cereal.
As wages increase, an individual's leisure becomes more costly, making him
less likely to choose leisure over labor. As the price of Coca Cola rises
consumers purchase more Sprite.