Suppose that the wage for drive-thru clerks is $7 an hour at Burger King and $6.50 at McDonald's.The jobs are alike in all other respects.We would expect
A)an increase in the supply of and demand for drive-thru clerks at Burger King
B)an increase in the supply and a decrease in the demand for drive-thru clerks at Burger King
C)a decrease in the supply of drive-thru clerks at Burger King but no change in demand
D)an increase in the supply of drive-thru clerks at Burger King but no change in demand
E)a decrease in the supply of and demand for drive-thru clerks at Burger King

Question

Quizplus · Accepted Answer

According to the law of supply, as price (wage) increases, quantity supplied increases. Therefore, we would expect an increase in the supply of drive-thru clerks at Burger King, as the wage is higher than at McDonald's. However, there is no information to suggest a change in the demand for drive-thru clerks at Burger King, so demand would remain the same. Therefore, the answer is D.

Suppose That the Wage for Drive-Thru Clerks Is $7 an Hour