Assume that Stan just received a promotion and raise.In terms of labor supply,the substitution effect of a higher wage will lead him to:

A) supply fewer hours of labor.
B) supply more hours of labor.
C) substitute leisure for work.
D) reduce work time to zero.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across different jobs and industries.

Substitution Effect

The change in quantity demanded of a good due to a change in its price, leading consumers to switch to or from substitute products.

Higher Wage

A wage rate that is above the average or minimum level commonly paid for similar work.