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

Question

Quizplus · Accepted Answer

According to the law of supply, when the wage rate increases, the quantity supplied of labor also increases. Therefore, we would expect an increase in the supply of drive-through clerks at Jason Burger because they offer a higher wage rate. The law of demand suggests that when the wage rate increases, the quantity demanded for labor decreases. However, since both jobs are alike in all other aspects, we cannot be sure that there will be a decrease in demand for drive-through clerks at Jason Burger. Therefore, the best answer is option D, as it suggests that there will be an increase in the supply of drive-through clerks at Jason Burger, but no change in demand.

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