Hannah’s wage rate is initially $10 per hour and she maximises her utility by supplying 8 hours of work. Subsequently, her wage rate increases to $15 per hour and her new equilibrium position corresponds to 9 hours of work. It is noted that the income effect (IE) causes the labour supply to change by 1 hour and the substitution effect (SE) causes the labour supply to change by 2 hours. How to draw in diagram, to show the IE and SE?

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