Question

A small town has few available workers, and unemployment is low. A family-owned restaurant in town has just had a very good year in profits and would like to hire additional wait staff to meet higher demand. Based on what you know of how worker earnings are determined, which of the following will most likely happen?

Answer 1

The restaurant will offer a higher wage than other comparable business

Step-by-step explanation:

Since the law of supply and demand states, the more the offer the lesser the price, but when supply remains constant and demand increases the prices tend to increase as well due to this problem of limited supply, so people starts to pay more for the same service or product in order to be able to have it, when this restaurant starts to need more workers and there is a limited amount in the town, they will have to pay more than a regular business in other place in order to be able to be attractive to workers.

Answer 2

Below are the choices that can be found elsewhere:

The restaurant will post strict education requirements for new hires.

The restaurant will offer a lower wage than other comparable businesses in the area.

The restaurant will decrease pay for existing workers.

The restaurant will offer a higher wage than other comparable bu

The answer is " The restaurant will offer a higher wage than other comparable bu"