If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $8.00 an hour to attract workers, a cut in the minimum wage to $5.00 an hour would cause them to

Question

Quizplus · Accepted Answer

The restaurant is already paying above the minimum wage to attract workers, indicating that the market rate for labor in this scenario is above the minimum wage. A reduction in the minimum wage would not necessarily affect their wage offering if they are already paying more to attract workers.

If a Fast Food Restaurant Was One of Many Hiring