Suppose all workers in the fast-food industry receive a substantial pay increase because of an increase in the minimum wage. What will happen in the fast-food industry that employs these workers?
A)Supply will decrease.
B)Supply will increase.
C)Output will rise.
D)Demand will decrease.
E)Prices will fall.

Question

Quizplus · Accepted Answer

An increase in wages raises the cost of production for fast-food businesses, leading to a decrease in supply as it becomes more expensive to produce the same quantity of goods.

Suppose All Workers in the Fast-Food Industry Receive a Substantial