Assume there is a $2.00 wage increase for all employees of firms currently operating in Industry "X". Based on the substitution effect, what is the likely impact on the number of hours worked by employees in Industry "X" and what is likely to happen to the amount of time allocated to leisure? Carefully explain

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The substitution effect in this scenario predicts an increase in the number of hours worked by employees in Industry X and a decrease in leisure time ... View the full answer