Figure 342 Illustrates Two Labor Supply Curves

Figure 34.2 illustrates two labor supply curves. If in-kind payments become readily available in this economy and marginal tax rates increase significantly, we would expect a shift from

A) S₁ to S₂ only.
B) S₂ to S₁ and a movement up S_1.
C) S₂ to S₁ only.
D) S₂ to S₁ and a movement down S₁.