The Scale Effect of a Wage Change Implies That

The scale effect of a wage change implies that:

A) Firms substitute toward the input that has become relatively cheaper.
B) The demand for labour may be upward sloping if labour is an inferior input.
C) Along with the substitution effect, the demand for labour is downward sloping.
D) In order to increase output, a firm will use more labour even if the wage increases.
E) The firm reduces its output in response to the wage increase.