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The correct answer is (A). If an hourly-wage employee works fewer than five days per week, the employee would need to work more than 8 hours per day on average to qualify for overtime pay in state Y. On the other hand, the same employee would need to work more than 8 hours per day only on one day to qualify for overtime pay in state X. Thus, employees working fewer than five days per week would prefer to work in state X. Given that most employees prefer to work in state Y, it is reasonable to conclude that.
