What would happen to the price of a hamburger if fast food restaurants were required to pay a living wage to all employees so that EITC benefits would be unnecessary?

Question

Quizplus · Accepted Answer

If fast food restaurants were required to pay a living wage to all employees, their labor costs would increase significantly. To cover these increased costs, they would either have to raise the price of their products or reduce their profit margins. Considering that a major portion of the fast-food industry's revenue comes from selling food items like hamburgers, it is likely that the price of hamburgers would go up. Therefore, option A is the most probable scenario.

What Would Happen to the Price of a Hamburger If