Question: Need as much details as possible. Microeconomics. Peter can work 24 hours a day if he wants to and gets wage w per hour worked.

Need as much details as possible. Microeconomics.

Peter can work 24 hours a day if he wants to and gets wage w per hour worked. His utility from leisure (work-free time) and consumption is U(C,L)=CL. If the wage of Peter goes up, which of the following statements is always correct?

a. The substitution effect on consumption means that consumption goes up.

b. The total effect on leisure means that leisure goes down.

c. The income effect on leisure means that leisure goes down.

d. The total effect on consumption is zero.

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