Which of the following describes the substitution effect?
As wages increase, an individual's total potential income rises, making him less likely to choose leisure over labor.
As wages increase, an individual's leisure becomes more costly, making him less likely to choose leisure over labor.
As wages increase, an individual's total potential income rises, making him more likely to choose leisure over labor.
As wages increase, an individuals leisure becomes less costly, making him more likely to choose leisure over labor.
