Other things constant, how will a decrease in the wages of teenagers affect the market for fast food hamburgers?
A) The supply of fast food hamburgers will increase, leading to an increase in the price of hamburgers.
B) The supply of fast food hamburgers will increase, leading to a reduction in the price of hamburgers.
C) The supply of fast food hamburgers will decrease, leading to an increase in the price of hamburgers.
D) The supply of fast food hamburgers will decrease, leading to a reduction in the price of hamburgers.

Question

Quizplus · Accepted Answer

A decrease in the wages of teenagers, who often work in fast food restaurants, reduces the cost of labor for these businesses. This can lead to an increase in the supply of fast food hamburgers, as it becomes cheaper to produce them, which typically results in a reduction in the price of hamburgers.

Other Things Constant, How Will a Decrease in the Wages