The Income Effect on Labour Supply Refers to

The income effect on labour supply refers to

A) the fact that at higher wages the worker earns more income.
B) the fact that as the wage rate increases and income increases,labourers demand more of all normal goods,including leisure activities.
C) the increase in the income of firms that is necessary to pay higher wages.
D) the fact that as workers become more productive,they earn more income.
E) the fact that as the wage rate increases and income increases,labourers demand more of all normal goods,including labour.